Can Checkers operate and change the System in any manner that is not expressly and specifically prohibited by the Checkers franchise agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
2.04 Reservation of Rights. Except as expressly provided in this Agreement, we and all of our Affiliates (and our respective successors and assigns, by purchase, merger, consolidation or otherwise) retain all of our rights and discretion with respect to the Marks, the System and Restaurants anywhere in the world, and the right to engage in any business whatsoever, including the right to: (a) operate, and grant to others the right to operate, "Checkers" and "Rally's"-branded restaurants at such locations and on such terms and conditions as we deem appropriate; (b) sell any products or services under the Marks or under any other trademarks, service marks or trade dress, through alternative channels of distribution, including without limitation, the internet or similar electronic media and supermarkets; (c) operate, and grant to others the right to operate, restaurants identified by trademarks, service marks or trade dress, other than the Marks, (including the [INSERT
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers retains all rights and discretion regarding the Marks, the System, and Restaurants, except as expressly provided in the franchise agreement. This includes the right to operate and franchise Checkers and Rally's-branded restaurants, sell products and services under the Marks through alternative channels, operate restaurants under different trademarks, and be acquired by another business, even a competitor.
This reservation of rights means that Checkers has broad authority to make changes to the System, products, services, and Marks, as long as those actions are not explicitly prohibited in the franchise agreement. For a prospective franchisee, this indicates that Checkers has significant control over the brand and operating standards. Franchisees must adhere to the System as it evolves, and they may not have the ability to prevent changes they disagree with unless those changes violate the specific terms of the franchise agreement.
This level of control is typical in franchising, where uniformity and brand consistency are considered important for maintaining customer goodwill and protecting the overall brand. However, it also means that franchisees bear the risk of adapting to changes implemented by Checkers, even if those changes require additional investment or alter the way they conduct business. Franchisees should carefully review the franchise agreement to understand the scope of Checkers's reserved rights and any limitations on those rights.