How does Checkers intend to resolve potential conflicts that may arise between a Checkers Restaurant and a Rally's Restaurant?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Company-owned and/or franchised Checkers Restaurants and Rally's Restaurants may compete with your Franchised Restaurant generally, although we do not currently intend to establish or franchise Checkers Restaurants in any Rally's franchisee's general market area, or Rally's Restaurants in any Checkers franchisee's general market area. Consequently, we do not anticipate any conflict(s) between the 2 systems. We intend to resolve any potential conflicts that may arise between a Checkers Restaurant and a Rally's Restaurant on a case-by-case basis.
We have integrated and will continue to integrate aspects of the Checkers and Rally's concepts. Although we intend to maintain separate brand names, outlets of both brands offer many of the same menu items and use a common restaurant design we have developed for both systems.
Source: Item 12 — TERRITORY (FDD pages 57–61)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers Restaurants and Rally's Restaurants, both company-owned and franchised, may compete with a franchisee's restaurant. However, Checkers states that they do not currently intend to establish or franchise Checkers Restaurants in any Rally's franchisee's general market area, or Rally's Restaurants in any Checkers franchisee's general market area. Because of this, Checkers does not anticipate any conflicts between the two systems.
Should a conflict arise between a Checkers Restaurant and a Rally's Restaurant, Checkers intends to resolve the conflict on a case-by-case basis. This means that there is no pre-defined procedure or set of rules in place to manage such conflicts. Instead, Checkers will assess each situation individually and determine the appropriate course of action.
While Checkers intends to maintain separate brand names for Checkers and Rally's, the FDD notes that the outlets of both brands offer many of the same menu items and use a common restaurant design. This integration of the two concepts could potentially lead to conflicts, making it important for prospective franchisees to understand how Checkers will handle these situations.