What is the process for Checkers to modify the Protected Area, and what is the franchisee's obligation in that process?
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's 2025 Franchise Disclosure Document, Checkers has the option to modify the Protected Area during the term of the franchise agreement. The process involves Checkers providing notice to the franchisee, and then Checkers can reduce or 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.
The franchisee's obligation in this process is to acknowledge and agree that Checkers is authorized to amend the franchise agreement to reflect such modification. Upon the amendment of the agreement by Checkers, the particular geographic area identified in the amended agreement will be deemed the Protected Area.
This means that Checkers can alter the franchisee's protected area, potentially impacting the franchisee's market and competitive landscape. The franchisee must accept these modifications and adhere to the amended agreement. This clause gives Checkers significant flexibility in managing its franchise network, but it also introduces uncertainty for the franchisee regarding the stability of their protected market. Franchisees should carefully consider this aspect and its potential impact on their business before investing in a Checkers franchise.