What is the Checkers franchisee's obligation regarding the location of supervision for the Franchised Restaurant?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
2.01 Grant of Franchise. You have applied for a franchise to own and operate a Restaurant at a location we approve, which will be identified on Exhibit B (the "Premises"). Subject to the terms of this Agreement, we grant to you the right, and you assume the obligation, to operate a Restaurant at the Premises and to use the System solely in connection therewith, for a term of twenty (20) years, starting on the Effective Date (the "Term"). You may not conduct the business of the Franchised Restaurant or use the System at any site other than the Premises, or relocate the Franchised Restaurant, without our prior consent. The Franchised Restaurant may not be used for any purpose other than the operation of a Restaurant in compliance with this Agreement. You may conduct business only with customers at the Franchised Restaurant and may not engage in any catering or delivery businesses without or prior consent which may be withheld for any reason.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
Based on the 2025 Checkers Franchise Disclosure Document, franchisees are obligated to operate their restaurant at a specific, approved location. The franchise agreement grants the franchisee the right and imposes the obligation to operate the restaurant at the premises detailed in Exhibit B.
According to the FDD, franchisees are explicitly restricted from conducting business or utilizing the Checkers system at any location other than the approved premises without prior consent from the franchisor. This consent is required for any relocation of the franchised restaurant as well. The FDD also states that the franchised restaurant must be used solely for the operation of a Checkers restaurant in compliance with the franchise agreement.
These stipulations ensure that Checkers maintains control over where its brand is represented and how its system is implemented. For a prospective franchisee, this means they cannot deviate from the approved location or alter the restaurant's purpose without risking breach of contract. It also prevents franchisees from expanding beyond their designated site without express permission, which could impact their business strategy and revenue potential.