factual

To maintain quality and service standards, what are Checkers franchisees required to purchase from approved suppliers?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

To ensure that high and uniform standards of quality and service are maintained, you are required to operate your Franchised Restaurant in strict conformity with our methods, standards and specifications and you are required to purchase goods, services, supplies, fixtures, equipment and inventory only from suppliers we have approved. You are not required to purchase or lease anything from us or any of our affiliates; however, we and our affiliates can be approved suppliers for items. Currently, we are not an approved supplier for any items except that we may from time to time sell used modular restaurants and restaurant equipment to Checkers and Rally's franchisees.

You must purchase or lease only those types, brands and models of fixtures, furniture, equipment (including modular buildings), signs and supplies that we approve for Restaurants as meeting our specifications and standards. You must purchase or lease approved types, brands, or models of fixtures, furniture, equipment, signs and supplies only from suppliers we approve. All fixtures, furniture, equipment, signs and supplies you purchase must be in "new" condition unless we permit otherwise in writing.

You will use in the development and operation of the Franchised Restaurant and/or offer for sale at the Franchised Restaurant only food products, beverages, ingredients, uniforms, packaging materials, menus, forms, labels, equipment, smallwares and other supplies and other products and services that conform to our specifications and quality standards and/or are purchased from suppliers, distributors and service providers (collectively, "supplier" or "suppliers") we approve (which may include us and/or any of our affiliates). We may modify the list of approved brands and/or suppliers. After notice of such modification, you may not reorder any brand or from any supplier that is no longer approved.

If you propose to use any brand or supplier that is not then approved by us, you must first notify us and submit sufficient information, specifications and samples concerning such brand and/or supplier so that we can decide whether such brand complies with our specifications and standards and/or such supplier meets our approved supplier criteria. We have the right to charge reasonable fees to cover our costs (currently, we charge only our out of pocket expenses). We will notify you of our decision within a reasonable period of time not to exceed 60 days.

If you are qualified and elect to participate in our optional Delivery Program, you must also purchase a printer from a supplier that we approve, which will be used to operate the Delivery Program from the Franchised Restaurant.

You must record all sales on electronic cash registers designated or approved by us.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)

What This Means (2025 FDD)

According to Checkers' 2025 Franchise Disclosure Document, franchisees must buy goods, services, supplies, fixtures, equipment, and inventory from approved suppliers to maintain consistent quality and service standards. This requirement ensures that all Checkers restaurants operate in strict accordance with the brand's methods, standards, and specifications. While franchisees are not obligated to purchase or lease anything directly from Checkers or its affiliates, these entities can be approved suppliers for various items.

The FDD specifies that franchisees must use only approved types, brands, and models of fixtures, furniture, equipment (including modular buildings), signs, and supplies that meet Checkers' standards. These items must be purchased or leased from approved suppliers and be in new condition unless Checkers provides written permission otherwise. This extends to all aspects of the restaurant's operation, including food products, beverages, ingredients, uniforms, packaging materials, menus, forms, labels, equipment, smallwares, and other supplies and services.

If a franchisee wishes to use a brand or supplier not already approved, they must notify Checkers and submit sufficient information for evaluation. Checkers may charge fees to cover the costs of this evaluation. Checkers will then decide whether the proposed brand complies with their standards and if the supplier meets their criteria, with a decision timeframe not exceeding 60 days. Checkers can also modify the list of approved brands and suppliers, and franchisees are prohibited from reordering from any supplier that is no longer approved after receiving notice of the change.

For franchisees participating in the optional Delivery Program, they must purchase a printer from a Checkers-approved supplier to operate the program. Additionally, franchisees must record all sales on electronic cash registers designated or approved by Checkers, potentially including computer-based systems compatible with Checkers' own system. This comprehensive approach to sourcing and supply chain management allows Checkers to maintain brand consistency and quality control across all franchise locations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.