How is the Protected Area determined for a Checkers restaurant located in an urban area?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands we control. However, you may receive a limited protected area, as follows: we will not operate (directly or through an affiliate), or grant to a third party the right to operate, any Checkers Restaurant or Rally's Restaurant located within the particular geographic area identified in Exhibit B attached to the Franchise Agreement (the "Protected Area"). The Protected Area, as defined by us, will be the lesser of: (i) a one (1) mile radius from the center of the Premises if your Franchised Restaurant is located in a suburban or rural area or (ii) an area immediately surrounding the Premises that encompasses a population of 20,000 residents if your Franchised Restaurant is located in an urban area. We do not provide a Protected Area to franchisees that operate Restaurants from Non-Traditional Sites.
Except for the rights we expressly grant you under the Franchise 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, Restaurants anywhere in the world, and the right to engage in any business whatsoever (without compensation to you), including the rights to:
Source: Item 12 — TERRITORY (FDD pages 57–61)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, franchisees may receive a limited protected area, but will not receive an exclusive territory. The size of the protected area depends on whether the restaurant is in a suburban/rural area or an urban area.
For Checkers restaurants located in urban areas, the protected area is defined as the area immediately surrounding the restaurant premises that encompasses a population of 20,000 residents. This means Checkers will not operate or grant to a third party the right to operate another Checkers or Rally's restaurant within that defined area. However, this protected area is not provided to franchisees operating from Non-Traditional Sites.
It's important to note that Checkers retains significant rights, even within a franchisee's protected area. Checkers can still operate or franchise other restaurants outside the protected area, including non-traditional sites. They can also sell products and services under the Checkers or Rally's trademarks through alternative channels of distribution like the internet or supermarkets, even within the protected area. Additionally, Checkers can modify the protected area during the term of the franchise agreement, reducing it to encompass a geographic area immediately surrounding the premises consisting of a population of 20,000 residents. If the population in the protected area drops below 20,000, Checkers has no obligation to expand the area.