Does Checkers identify suppliers from whom I must buy equipment and supplies?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- As discussed in Item 8, identify certain products and services, equipment and supplies that you must use to develop and operate your Franchised Restaurant, the minimum standards and specifications that you must satisfy, and the designated and approved suppliers from whom you must or may buy or lease these items (which may be limited to and/or include us, our affiliates, and/or other specified exclusive sources). (Franchise Agreement − Sections 3.05, 9.03 and 9.04)
Computer Hardware and Software
You must record all sales on electronic cash registers designated or approved by us. You may be required to use computer-based cash registers which are fully compatible with our computer system and which include an information interface capability to communicate electronically with our computer system. We may require you to obtain equipment, software,
Currently, we require you to use the Aloha POS system (version 19 or higher) and an integrated restaurant management system owned by Xenial, Inc. ("Xenial"). The Aloha system includes sales processing (including credit cards) and communication of orders to a printer or kitchen display monitors. The Xenial system includes food cost, inventory management, and labor management software features. We also require that you use a firewall system from one of our preferred vendors. We estimate the initial hardware and software cost for the standard configuration Aloha POS system, the firewall system, and Xenial restaurant management system will be approximately $22,000 to $27,000, depending on the size of your Franchised Restaurant. Currently, the approximate annual ongoing costs of those systems which you must pay directly to the suppliers are $1,400 to $1,600 for Xenial support; approximately $450 for Aloha software maintenance for 3 terminals plus $90 for each additional terminal (plus applicable taxes); and between $1,100 and $6,000 for hardware depending on the hardware in use at the Franchised Restaurant (after second year of use) (plus applicable taxes).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers identifies specific products, services, equipment, and supplies that franchisees must use to develop and operate their franchised restaurant. Checkers also sets minimum standards and specifications that franchisees must meet.
Checkers designates and approves specific suppliers from whom franchisees must or may buy or lease these items. These suppliers may include Checkers itself, its affiliates, or other specified exclusive sources. This means a prospective franchisee may have limited or no choice regarding where they source certain essential items for their Checkers restaurant.
For computer hardware and software, Checkers requires franchisees to record all sales on electronic cash registers designated or approved by them. Franchisees may be required to use computer-based cash registers that are fully compatible with Checkers' computer system, including an information interface capability to communicate electronically with their system. Currently, Checkers requires the use of the Aloha POS system (version 19 or higher) and an integrated restaurant management system owned by Xenial, Inc., as well as a firewall system from one of their preferred vendors. The initial hardware and software cost for these systems is estimated to be approximately $22,000 to $27,000, with annual ongoing costs ranging from $1,400 to $1,600 for Xenial support, approximately $450 for Aloha software maintenance (plus $90 for each additional terminal), and between $1,100 and $6,000 for hardware (after the second year of use), plus applicable taxes. These costs highlight the importance of carefully reviewing the list of designated suppliers and understanding the financial implications of these requirements.