What are the specific obligations of a Checkers franchisee regarding adherence to brand standards, as detailed across Items 8 and 9?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| OBLIGATION | SECTION IN AGREEMENT | DISCLOSURE DOCUMENT ITEM |
|---|---|---|
| g. Compliance with Standards and Policies/Operations manuals | Sections 4.03 and 9 of the Franchise Agreement | Items 8 and 11 |
| l. Ongoing product/service | Sections 9.03 and 9.04 of | Item 8 |
| purchases | the Franchise Agreement | |
| n. Insurance | Section 9.07 of the Franchise Agreement | Item 8 |
| o. Advertising | Sections 3.06 and 10 of the Franchise Agreement | Items 6, 7, 8 and 11 |
To ensure that high and uniform standards of quality and service are maintained, you are required to operate your Franchised Restaurant in strict conformity with our methods, standards and specifications and you are required to purchase goods, services, supplies, fixtures, equipment and inventory only from suppliers we have approved. You are not required to purchase or lease anything from us or any of our affiliates; however, we and our affiliates can be approved suppliers for items. Currently, we are not an approved supplier for any items except that we may from time to time sell used modular restaurants and restaurant equipment to Checkers and Rally's franchisees. We estimate the initial cost of all of required purchases and leases of goods, services, supplies, fixtures, equipment and inventory to be in excess of 95% of your total initial investment (see Item 7). We estimate the ongoing cost of these required purchases and leases to be in excess of 95% of your total ongoing operating expenses.
We may formulate and modify, at our sole discretion, specifications and standards we impose on franchisees and suppliers. Specifications and standards are issued to franchisees through the Operations Manual (defined below) and to suppliers by written notice. The "Operations Manual" is our confidential operations manual, as we may amend at any time, which may consist of one or more manuals or communications, containing our mandatory and suggested standards, specifications and operating procedures relating to the development and operation of Restaurants and other information relating to your obligations as a franchisee and operator of a Restaurant. The term "Operations Manual" also includes all instructions or communications we or our representatives may transmit to you or a substantial number of franchisees, whether in writing or through other media, concerning aspects or modifications to the System, standards, specifications and operating procedures, including bulletins, emails, limited access intranet sites, videotapes, audio tapes, or any other electronic medium.
We require you to sell all food, beverage and other products and services that we determine from time to time to be appropriate for your Franchised Restaurant, including required menu items as we may set from time to time.
You must participate in our market research programs by test marketing new food products and services in your restaurant and providing us with timely reports and other relevant information regarding such market research.
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, franchisees have several obligations to maintain brand standards. Item 9 outlines franchisee responsibilities, referencing sections in the franchise agreement and other relevant items in the FDD. Specifically, franchisees must comply with standards and policies detailed in the operations manuals, as stated in Sections 4.03 and 9 of the Franchise Agreement, and as further described in Items 8 and 11. Franchisees are also obligated to adhere to ongoing product/service purchase requirements as outlined in Sections 9.03 and 9.04 of the Franchise Agreement and Item 8. Insurance requirements are also covered in Section 9.07 of the Franchise Agreement and Item 8. Compliance with advertising standards is found in Sections 3.06 and 10 of the Franchise Agreement, and Items 6, 7, 8, and 11.
Item 8 emphasizes that franchisees must operate their restaurants in strict accordance with Checkers' methods, standards, and specifications. This includes purchasing goods, services, supplies, fixtures, equipment, and inventory only from approved suppliers. Checkers may modify these specifications and standards at its sole discretion, communicating changes through the Operations Manual or written notices to suppliers. The Operations Manual includes mandatory and suggested standards, specifications, and operating procedures. It also encompasses any instructions or communications, whether written or through other media, concerning modifications to the System.
These stipulations ensure uniformity and quality across all Checkers locations, protecting the brand's reputation. For a prospective franchisee, this means a significant portion of their initial and ongoing operating expenses, estimated to be over 95%, will be directed towards purchases dictated by Checkers' standards and from approved suppliers. While Checkers attempts to negotiate favorable purchase arrangements, franchisees must adhere to these requirements, which limits their autonomy in sourcing products and services. Franchisees must also sell all food, beverage and other products and services that Checkers deems appropriate, including required menu items, and participate in market research programs by test marketing new food products and services in their restaurant and providing timely reports.