Does Checkers retain rights to operate restaurants outside the Protected Area?

According to Checkers's 2025 Franchise Disclosure Document, Checkers retains significant rights regarding the operation of restaurants outside a franchisee's protected area. Specifically, Checkers has the right to establish and operate, and grant to others the right to operate, restaurants at locations outside the Protected Area, on terms and conditions they deem appropriate. This means that while a franchisee may have a Protected Area, Checkers is not restricted from opening or franchising other locations outside of it.

This policy has important implications for prospective franchisees. While a franchisee is granted a Protected Area, Checkers retains the freedom to expand its brand presence outside that area. This could lead to increased competition in the general vicinity of a franchisee's location, although not directly within their Protected Area. The terms and conditions under which Checkers operates or franchises these other locations are at their discretion, offering franchisees little control over potential competition from other Checkers restaurants outside their Protected Area.

This is a fairly standard practice in the franchise industry, where franchisors typically retain rights to expand and develop their brand as they see fit. However, it underscores the importance of understanding the specific terms of the franchise agreement regarding territorial protection and the potential for competition from both company-owned and franchised locations. Franchisees should carefully evaluate the market and potential for competition before investing in a Checkers franchise.