According to the document, what restaurant names can a Checkersrallys franchisee operate?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
1. INTRODUCTION.
- 1.01 Restaurants. We own, operate and franchise "Checkers" and "Rally's" branded restaurants, which feature a limited menu of hamburgers, cheeseburgers, hot dogs and/or such other menu items as we may authorize at any time and from time to time. We have developed and own a comprehensive System (defined below in Section 1.04) for developing and operating Restaurants.
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deem appropriate and wherever such restaurants are located; (e) to acquire the assets or ownership interests of one or more businesses providing products and services similar or dissimilar to those provided at "Checkers" and "Rally's"-branded restaurants, and to franchise, license or create similar arrangements with respect to these businesses once acquired, and which businesses we may (at our sole discretion, and without obligation) convert, or allow to be converted, to operations as "Checkers" or "Rally's"-branded restaurants using any of the Marks and/or the System, wherever these businesses (or the franchisees or licensees of these businesses) are located or operating (including in the Protected Area, if applicable); and (f) to be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction), by a business providing products and services similar to those provided at "Checkers" or "Rally's"-branded restaurants, or by another business, even if such business operates, franchises and/or licenses Competitive Businesses in the Protected Area.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee is generally permitted to operate restaurants branded as "Checkers" and "Rally's". The document specifies that Checkersrallys owns, operates, and franchises restaurants under these names, featuring a limited menu.
However, Checkersrallys retains significant rights regarding the use of its trademarks and the operation of other restaurants. Specifically, Checkersrallys reserves the right to establish and operate, or grant others the right to operate, restaurants identified by trademarks, service marks, or trade dress other than the "Checkers" and "Rally's" marks. This includes the right to operate restaurants with different branding, potentially offering products and services similar or dissimilar to those of Checkersrallys.
This reservation of rights means that while a franchisee is granted the right to operate a Checkersrallys restaurant, the franchisor can also operate or franchise other restaurant concepts, even if they compete directly with the franchisee's location. Prospective franchisees should be aware that Checkersrallys has the latitude to introduce new brands or operate existing brands under different names, which could impact the franchisee's market and profitability.