What is Checkers' obligation if the population in the Protected Area falls below 30,000 residents?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, we may, from time to time during the Term, at our sole option and upon providing notice to you, reduce or otherwise modify the size and/or boundaries of the Protected Area to encompass a geographic area immediately surrounding the Premises consisting of thirty thousand (30,000) residents. If at any time during the Term the population in the Protected Area becomes less than thirty thousand (30,000) residents, we have no obligation to expand or modify the size and/or boundaries of the Protected Area to include a greater population. You and we agree that upon any modification to the size and/or boundaries of the Protected Area pursuant to this Section, we are authorized to amend this Agreement to reflect such modification. You and we hereby agree that upon the amendment of this Agreement by us in accordance with this Section, the particular geographic area identified thereon shall be deemed the Protected Area under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers has no obligation to expand or modify the size of a franchisee's protected area if the population within that area falls below 30,000 residents. The protected area is defined as either a one-mile radius from the restaurant if it's in a suburban or rural area, or an area encompassing 20,000 residents if the restaurant is in an urban area.
Checkers retains the right to modify the protected area to include a geographic area of 30,000 residents. However, this modification is at Checkers' sole option and requires notice to the franchisee. This means Checkers is not required to make this change, but can choose to do so.
If the population in the protected area drops below 30,000, Checkers is not obligated to take any action to increase the population size within the protected area. The franchisee bears the risk of population decline affecting their business, with no recourse to demand an expanded territory. The franchise agreement can be amended to reflect any modifications to the protected area's size or boundaries.