What is the meaning of 'System' in the Checkers Development Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
"Restaurants" – [INSERT BRAND: Checkers/Rally's] restaurants we or any of our Affiliates own, operate or franchise that use the Marks and System.
"Confidential Information" - Our proprietary and confidential information relating to the development and operation of Restaurants, including: (1) ingredients, recipes, and methods of preparation and presentation of food products we authorize; (2) site selection criteria for Restaurants and plans and specifications for the development of Restaurants; (3) sales, marketing and advertising programs and techniques for Restaurants; (4) identity of suppliers, and knowledge of specifications and pricing for authorized food products, materials, supplies and equipment, we authorize; (5) knowledge of operating results and financial performance of Restaurants, other than Restaurants you own; (6) methods of inventory control, storage, product handling, training and management relating to Restaurants; (7) computer systems and software programs; and (8) any and all other information we provide you, your Owners or Affiliates that is designated orally or in writing as proprietary or confidential or by its nature would reasonably be understood to be proprietary or confidential, regardless of whether such information is specifically designated as proprietary or confidential.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the term 'Restaurants' refers to Checkers or Rally's restaurants that Checkers or its affiliates own, operate, or franchise, which utilize the Marks and System. The FDD also defines several components that contribute to Checkers' 'Confidential Information.' This information includes proprietary details related to the development and operation of Checkers restaurants.
This confidential information encompasses a range of elements, including the ingredients, recipes, and preparation methods for authorized food products, site selection criteria and development plans for restaurants, sales, marketing, and advertising strategies, supplier information and specifications for authorized products, operational results and financial performance data, inventory control methods, and computer systems and software programs.
Essentially, the 'System' represents the comprehensive collection of proprietary knowledge, methods, and resources that define the Checkers brand and its operational standards. Franchisees are expected to maintain the uniformity of Checkers' high-quality standards at all restaurants in order to protect and preserve the goodwill of the Marks and the integrity of the System.