What right does the franchise agreement provide to a Checkers franchisee?

According to Checkers' 2025 Franchise Disclosure Document, the franchise agreement grants the franchisee the right to construct, own, and operate a Checkers or Rally's restaurant at a site approved by the company. This agreement also allows the franchisee to utilize the Checkers and Rally's system in the operation of the restaurant at the specified location. Essentially, Checkers grants the right to establish and run a restaurant under their brand, following their established operational system.

The franchise agreement typically has a fixed term, along with a fixed-term renewal option, both of which are subject to certain conditions. The document specifies a 20-year initial term and a 10-year renewal term. This means a franchisee can expect to operate under the Checkers brand for a defined period, with the possibility of extending the agreement if they meet the necessary requirements.

Checkers considers the franchise agreement as providing the franchisee with the right to use the company's symbolic intellectual property throughout the contractual term. This indicates that a significant part of the franchise agreement revolves around the franchisee's authorized use of Checkers' trademarks, branding, and other intellectual property assets. The agreement outlines revenue sources recognized over the contract term, further defining the financial relationship between Checkers and its franchisees.