Under the Checkers Development Agreement, are there any initial restrictions on the goods and services I can offer?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
The Development Agreement contains no provisions restricting the goods and services you offer. However, with respect to each Restaurant developed under the Development Agreement, you will be subject to the restrictions on goods and services contained in our thencurrent standard franchise agreement. The restrictions in our current Franchise Agreement are set out above.
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. From time to time, we may designate menu items as being required or optional and also may 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. You may not use your Franchised Restaurant for any purpose other than the operation of a Restaurant in compliance with the Franchise Agreement.
You must at all times maintain an inventory of approved food products, beverages, ingredients and other products sufficient in quantity, quality and variety to operate the
Franchised Restaurant in accordance with our prescribed standards and specifications for Checkers Restaurants or Rally's Restaurants.
We may conduct market research to determine consumer trends and salability of new food products and services. 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. You must purchase a reasonable quantity of such test products and make a reasonable effort to sell them.
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, the Development Agreement itself does not contain initial restrictions on the goods and services a franchisee can offer. However, the FDD states that each restaurant developed under the Development Agreement will be subject to the restrictions on goods and services outlined in Checkers's then-current standard franchise agreement.
The Checkers Franchise Agreement stipulates that franchisees must sell all food, beverage, and other products and services that Checkers deems appropriate for the franchised restaurant. This includes required menu items, which Checkers may designate as required or optional, and test menu items, also on a required or optional basis. Franchisees are not restricted as to the customers they may serve.
Furthermore, franchisees are only permitted to conduct business with customers at the franchised restaurant and may not engage in catering or delivery operations without Checkers's approval, although they may be allowed to offer certain delivered products for delivery if they meet Checkers's requirements and participate in the optional Delivery Program. The franchised restaurant cannot offer any products or services, including promotional items, not authorized by Checkers without prior written approval. Checkers retains the right to change the types of authorized goods and services with no limitations. Franchisees must also maintain an inventory of approved food products, beverages, ingredients, and other products sufficient in quantity, quality, and variety to operate the franchised restaurant according to Checkers's prescribed standards and specifications. Franchisees are also required to participate in Checkers's market research programs by test marketing new food products and services and providing timely reports and other relevant information.