factual

For Checkers restaurants, can franchisees purchase or lease fixtures, furniture, equipment, and signs from suppliers that Checkers has not approved?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

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Purchase or Lease of Equipment, Furniture, Fixtures and Signs

You must purchase or lease only those types, brands and models of fixtures, furniture, equipment (including modular buildings), signs and supplies that we approve for Restaurants as meeting our specifications and standards. You must purchase or lease approved types, brands, or models of fixtures, furniture, equipment, signs and supplies only from suppliers we approve. All fixtures, furniture, equipment, signs and supplies you purchase must be in "new" condition unless we permit otherwise in writing.

Suppliers, Products, Services, Beverages, Supplies and Materials

You will use in the development and operation of the Franchised Restaurant and/or offer for sale at the Franchised Restaurant only food products, beverages, ingredients, uniforms, packaging materials, menus, forms, labels, equipment, smallwares and other supplies and other products and services that conform to our specifications and quality standards and/or are purchased from suppliers, distributors and service providers (collectively, "supplier" or "suppliers") we approve (which may include us and/or any of our affiliates). We may modify the list of approved brands and/or suppliers. After notice of such modification, you may not reorder any brand or from any supplier that is no longer approved.

If you propose to use any brand or supplier that is not then approved by us, you must first notify us and submit sufficient information, specifications and samples concerning such brand and/or supplier so that we can decide whether such brand complies with our specifications and standards and/or such supplier meets our approved supplier criteria.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)

What This Means (2025 FDD)

According to Checkers' 2025 Franchise Disclosure Document, franchisees must purchase or lease fixtures, furniture, equipment, and signs that meet Checkers' specifications and standards. These items must be acquired exclusively from suppliers that Checkers has approved. All purchased or leased items must be in new condition unless Checkers provides written permission otherwise.

If a Checkers franchisee wishes to use a brand or supplier not already approved, they must notify Checkers and submit sufficient information, specifications, and samples for evaluation. Checkers may charge fees to cover the costs of this review, currently limited to out-of-pocket expenses. Checkers will then decide whether the brand complies with their standards and if the supplier meets their criteria, notifying the franchisee of their decision within 60 days.

Checkers retains the right to set procedures for approval requests and impose obligations on suppliers, potentially requiring these to be incorporated into a written agreement. Checkers can also limit the number of suppliers or brands for any items and set required, optional, or test menu items. Checkers will provide its current supplier criteria upon request when evaluating a new supplier, item, or service. Furthermore, Checkers reserves the right to revoke approval of any supplier by notifying both the supplier and the franchisee in writing.

This level of control is typical in franchising to ensure brand consistency and quality control. While it limits a franchisee's autonomy in sourcing, it also aims to leverage the franchisor's expertise and negotiated rates with suppliers. Prospective Checkers franchisees should carefully consider these restrictions and the potential impact on their operating costs and flexibility.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.