What rights does the Checkers franchise agreement grant to the franchisee?

According to Checkers's 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 Checkers. This also includes the right to use the Checkers and Rally's system in connection with the restaurant's operation at the approved location. The agreement typically has a 20-year term with an option to renew for 10 years, contingent upon meeting certain conditions.

This means that a franchisee is not only buying into the Checkers brand and its established business model but also securing the exclusive right to operate a restaurant under that brand at a specific location. The initial 20-year term provides a substantial window for the franchisee to build their business and recoup their investment, while the 10-year renewal option offers the potential for long-term operation, provided the franchisee meets the requirements for renewal.

The FDD considers the franchise agreement as granting the right to use Checkers's symbolic intellectual property throughout the contract term. This highlights the importance of adhering to Checkers's standards and procedures to maintain the integrity of the brand and ensure consistent customer experience. The franchisee's ability to leverage Checkers's brand recognition and established operating system is a key benefit of the franchise arrangement.

Prospective franchisees should carefully review the conditions for renewal to understand what is required to extend the franchise agreement beyond the initial term. Additionally, understanding the obligations related to maintaining brand standards and utilizing Checkers's operating system is crucial for maximizing the benefits of the franchise and ensuring long-term success.