Under what condition can a Checkers franchisee engage in catering or delivery businesses?

According to the 2025 Checkers Franchise Disclosure Document, a franchisee's ability to engage in catering or delivery businesses is contingent upon obtaining prior consent from Checkers. This consent can be withheld by Checkers for any reason. This stipulation is part of the agreement that grants the franchisee the right to operate a Checkers restaurant at a specific location for a term of 20 years. The franchisee is obligated to conduct business only with customers at the franchised restaurant unless explicit consent is given for catering or delivery services.

This requirement for prior consent gives Checkers significant control over how its franchisees operate and expand their businesses. It allows Checkers to manage brand consistency, service quality, and market strategies across all franchise locations. For a prospective franchisee, this means they cannot independently decide to offer catering or delivery services to boost revenue; they must first seek and obtain approval from Checkers, which may or may not be granted.

The franchisor's right to deny consent for catering or delivery businesses provides Checkers with the flexibility to adapt to changing market conditions and consumer preferences. For example, Checkers might want to test a new delivery platform or catering menu before allowing all franchisees to offer these services. Alternatively, Checkers may want to limit the number of franchisees offering these services in a particular area to avoid oversaturation and maintain profitability for existing franchisees.

This clause is fairly common in franchise agreements, as franchisors typically want to maintain tight control over their brand and operations. However, it is crucial for prospective Checkers franchisees to understand this restriction and discuss their plans for potential catering or delivery services with Checkers during the due diligence process. Understanding the franchisor's criteria for granting consent and their long-term strategy for these services can help franchisees make informed decisions about their investment.