Under the Checkers Franchise Agreement, what are the possible names of the franchised restaurant?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
--|----|-----|---------|----------|-------------------------------------------------------------------------------------| | | | | | | | | | | RESTAURANTS, INC., a Delaware corporation ("Franchisor," "we," "our," or "us"), and | | | | | | | | | | | ("you" or "your" or "Franchisee"). We and you may each | | | | | be referred to as a "Party," or collectively, the "Parties." | | | | | | |
R E C I T A L S
WHEREAS, Franchisor has implemented an incentive program available to qualified existing franchisees of "Checkers" or "Rally's" restaurants under which the Initial Franchise Fee due under Franchisor's current form of franchise agreement is reduced by $10,000 if the franchisee opens its Restaurant within one (1) year of signing the Franchise Agreement (the "Existing Franchisee Incentive" or "Incentive");
WHEREAS, Franchisee is an existing franchisee under separate franchise agreements with Franchisor for the operation of at least two (2) "Checkers" or "Rally's" restaurants;
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, the franchised restaurant can be named "Checkers" or "Rally's".
This is because Checkers has implemented an incentive program for existing franchisees of either "Checkers" or "Rally's" restaurants. This incentive reduces the initial franchise fee by $10,000 if the franchisee opens their restaurant within one year of signing the Franchise Agreement. This suggests that franchisees may have the option to operate under either brand name, especially if they already have experience with one of them.
Furthermore, Checkers retains all rights and discretion with respect to the Marks, the System, the sale of products and services similar or dissimilar to those offered by "Checkers" and "Rally's"-branded restaurants, and the operation or franchising of "Checkers" and "Rally's"-branded restaurants anywhere located or to be located. This indicates that Checkers has the authority to allow franchisees to operate under either the Checkers or Rally's brand, and can open franchises of either brand in any location.