Under what conditions may a Checkers franchisee engage in catering or delivery operations?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ay introduce test menu items on a required or optional basis. You are not restricted as to the customers whom you may serve at the Franchised Restaurant.
The Franchise Agreements requires that you only conduct business with customers at the Franchised Restaurant and may not engage in any catering or delivery operations without our approval. You may be allowed to offer certain Delivered Products for delivery if you meet our requirements and elect to participate in our optional Delivery Program.
Your Franchised Restaurant may not offer any products or services (including promotional items) not authorized by us for Restaurants without our prior written approval. We have the right to change the types of authorized goods and services, and there are no limits on our right to make changes.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 65–66)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, franchisees are generally restricted from engaging in catering or delivery operations without prior approval. The Franchise Agreement stipulates that franchisees may only conduct business with customers at the Franchised Restaurant and cannot engage in catering or delivery businesses without Checkers's consent, which Checkers may withhold for any reason.
However, Checkers franchisees may be allowed to offer certain delivered products for delivery if they meet Checkers's requirements and elect to participate in Checkers's optional Delivery Program. If a franchisee participates in the optional Delivery Program, Checkers does not provide exclusivity in Delivery Areas. Checkers, other franchisees, and/or Delivery Service Providers (DSPs) may directly or indirectly provide delivery or catering services from other Checkers and/or Rally's restaurants and advertise under the Marks within and outside of the Delivery Areas.
In summary, a Checkers franchisee's ability to engage in catering or delivery operations is contingent upon obtaining Checkers's approval or participating in the optional Delivery Program, which is subject to specific requirements set by Checkers. A prospective franchisee should carefully evaluate the terms and conditions of the Delivery Program and the potential for competition from other delivery services and Checkers or Rally's restaurants.