Can Checkers operate or grant the right to operate 'Checkers' or 'Rally's'-branded restaurants within the Development Area?

According to Checkers' 2025 Franchise Disclosure Document, Checkers is restricted from operating or granting the right to operate any "Checkers" or "Rally's"-branded restaurants within the Development Area, with certain exceptions. This restriction is in place to protect the franchisee's defined territory and market potential. However, Checkers retains specific rights to operate or franchise restaurants within the Development Area under certain circumstances.

These exceptions include franchises granted to the franchisee under the Development Agreement, "Checkers" and "Rally's"-branded restaurants open (or under commitment to open) as of the Effective Date of the agreement, and restaurants located in venues that generate independent customer traffic, such as military bases, transportation hubs, sports venues, educational facilities, and casinos. Additionally, Checkers can operate or franchise restaurants at co-branding locations, mobile units at special events, and restaurants acquired from other franchise systems or chains, regardless of whether they are converted to "Checkers" or "Rally's"-branded restaurants.

This reservation of rights allows Checkers to maintain flexibility in expanding its brand presence in non-traditional locations or through acquisitions, even within a franchisee's Development Area. For a prospective franchisee, this means that while they are granted a Development Area, Checkers can still operate or franchise its restaurants in specific locations or through alternative channels within that area, which could potentially impact the franchisee's market share and revenue. It is important for a prospective franchisee to understand these exceptions and how they might affect their business within the Development Area.