Does Checkers retain rights to the Marks and System outside of what is expressly provided in the Checkers Development Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise expressly provided in the Development Agreement, we and all of our affiliates (and our or their 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 (without compensation to you), including the right to: (a) operate, and grant to others the right to operate, 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 other trademarks, service marks or trade dress, through alternative channels of distribution (including 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, under the terms and conditions we deem appropriate; and (d) be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction), by a business providing products and services similar to those provided at Checkers Restaurants or Rally's Restaurants, or by another business, even if such business operates, franchises and/or licenses Competitive Businesses in the Development Area.
Source: Item 12 — TERRITORY (FDD pages 57–61)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, Checkers retains significant rights to its Marks and System beyond what is explicitly granted in the Development Agreement. Except as expressly provided in the Development Agreement, Checkers and its affiliates retain all rights and discretion concerning the Marks, the System, and Restaurants globally. This includes the right to engage in any business without compensating the franchisee.
Checkers maintains the right to operate or grant others the right to operate Restaurants at any location and under any terms they deem appropriate. They can also sell products and services under the Marks, or other trademarks, through various channels, including the internet and supermarkets. Additionally, Checkers can operate or allow others to operate restaurants with different trademarks, service marks, or trade dress under terms they find suitable.
Furthermore, Checkers has the right to be acquired by another business, even one that provides similar products or services or operates competitive businesses within the Development Area. These retained rights and the discretion Checkers holds could impact a franchisee's operations and market, as Checkers can pursue various business opportunities and partnerships that may compete with or otherwise affect the franchisee's business.
Prospective franchisees should carefully consider these retained rights and discuss with Checkers how these rights might be exercised and what protections, if any, are in place to mitigate potential conflicts or competitive impacts. Understanding the full scope of Checkers's retained rights is crucial for assessing the potential risks and opportunities associated with investing in a Checkers franchise.