Under a Checkers Development Agreement, what is the geographical area where I can develop restaurants called?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
The Development Agreement grants you the right to develop an agreed upon number of Checkers Restaurants or Rally's Restaurants within a geographical area described in Exhibit A to the Development Agreement (the "Development Area"). The size of the Development Area will depend on the number of Checkers Restaurants or Rally's Restaurants suitable for the Development Area, as mutually determined in light of factors such as population density and the residential or commercial character of the area. The number of Checkers Restaurants or Rally's Restaurants and the dates they are to be open and operating, including development schedules for such restaurants, will be set out in Exhibit A to the Development Agreement (the "Development Schedule").
You will not receive an exclusive territory in the Development Area. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. During the term of the Development Agreement, as long as you and your affiliates are in compliance with the agreement and all other agreements with us or any of our affiliates (including Franchise Agreements signed under the Development Agreement), we will: (a) grant to you, in accordance with Section 3 of the Development Agreement, at least that cumulative number of franchises for Checkers Restaurants or Rally's Restaurants set forth in Exhibit A to the Development Agreement, all of which are to be located within the Development Area (the locations of which we will approve in accordance with our then current criteria for selection of a Checkers Restaurant or Rally's Restaurant site); and (b) not operate (directly or through an affiliate), nor grant the right to operate, any Checkers Restaurants or Rally's Restaurants located within the Development Area, except for: (1) franchises granted pursuant to the Development Agreement; (2) Restaurants open (or under commitment to open) as of the date of the Development Agreement; (3) Checkers Restaurants, Rally's Restaurants or other restaurants using any part or all of the System and/or Marks at Non-Traditional Sites; and (4) restaurants that we purchase (or as to which we purchase the rights as franchisor) that are part of another franchise system or chain, regardless whether such restaurants are converted to operations as Checkers Restaurants or Rally's Restaurants using any of the
Source: Item 12 — TERRITORY (FDD pages 57–61)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the geographical area where a developer can build restaurants is called the "Development Area." The size of this area, as detailed in Exhibit A of the Development Agreement, is determined by mutual agreement, considering factors like population density and the area's residential or commercial nature. The number of Checkers restaurants to be developed and their opening dates are also specified in Exhibit A, forming the "Development Schedule."
It is important to note that Checkers development agreements do not grant exclusive territories. Franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels. However, as long as the franchisee remains compliant with all agreements, Checkers will grant them at least the cumulative number of franchises outlined in Exhibit A, all located within the Development Area. Checkers retains approval rights over the specific locations of these restaurants, based on their current site selection criteria.
Checkers also commits not to operate or grant the right to operate any Checkers restaurants within the Development Area, with some exceptions. These exceptions include franchises granted under the Development Agreement, restaurants already open or committed to opening when the agreement was signed, Checkers restaurants at non-traditional sites, and restaurants acquired as part of another franchise system, even if converted to Checkers restaurants.