When Checkers has reserved a right or discretion, on what basis can Checkers make its decision?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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 means Checkers has broad authority to make decisions about the brand, its operations, and restaurant locations.
Checkers can operate and grant others the right to operate Checkers and Rally's-branded restaurants under terms and conditions they deem appropriate. They can also sell products or services under the Marks through alternative channels of distribution, such as the internet or supermarkets. Additionally, Checkers can operate or franchise other restaurant brands that do not use the Checkers or Rally's Marks under terms they consider appropriate, and can be acquired by another business even if that business operates competitive businesses in the franchisee's development area.
For a prospective franchisee, this reservation of rights means that Checkers has significant control over the brand and its development. While the franchisee has certain rights within their Development Area, Checkers can still make decisions that could impact their business, such as opening competing restaurants in non-traditional locations or selling Checkers-branded products through other channels. It is important for franchisees to understand these rights and how they might affect their investment.
Furthermore, Checkers retains the right to modify or waive obligations under the agreement. They may unilaterally waive or reduce any obligation of the franchisee, and any waiver is subject to continuing review and can be revoked at any time with 10 days' prior written notice. This clause emphasizes that Checkers maintains considerable flexibility in how it manages the franchise system and the agreements with its franchisees.