factual

According to the FDD, what is Checkersrallys currently approved to sell to franchisees?

Checkersrallys Franchise · 2025 FDD

Answer from 2025 FDD Document

To ensure that high and uniform standards of quality and service are maintained, you are required to operate your Franchised Restaurant in strict conformity with our methods, standards and specifications and you are required to purchase goods, services, supplies, fixtures, equipment and inventory only from suppliers we have approved. You are not required to purchase or lease anything from us or any of our affiliates; however, we and our affiliates can be approved suppliers for items. Currently, we are not an approved supplier for any items except that we may from time to time sell used modular restaurants and restaurant equipment to Checkers and Rally's franchisees.

You will use in the development and operation of the Franchised Restaurant and/or offer for sale at the Franchised Restaurant only food products, beverages, ingredients, uniforms, packaging materials, menus, forms, labels, equipment, smallwares and other supplies and other products and services that conform to our specifications and quality standards and/or are purchased from suppliers, distributors and service providers (collectively, "supplier" or "suppliers") we approve (which may include us and/or any of our affiliates). We may modify the list of approved brands and/or suppliers. After notice of such modification, you may not reorder any brand or from any supplier that is no longer approved.

If you propose to use any brand or supplier that is not then approved by us, you must first notify us and submit sufficient information, specifications and samples concerning such brand and/or supplier so that we can decide whether such brand complies with our specifications and standards and/or such supplier meets our approved supplier criteria. We have the right to charge reasonable fees to cover our costs (currently, we charge only our out of pocket expenses). We will notify you of our decision within a reasonable period of time not to exceed 60 days. We may prescribe procedures for the submission of requests for approval and impose obligations on suppliers, which we may require to be incorporated in a written agreement. We may impose limits on the number of suppliers and/or brands for any of the foregoing items and set required, optional or test menu items. We will make available our then current supplier criteria to you, as necessary, upon request if we are asked to evaluate and approve a new supplier, item, or service for use with the System. We may revoke our approval of any supplier by notifying the supplier and you in writing.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)

What This Means (2025 FDD)

According to Checkersrallys' 2025 Franchise Disclosure Document, franchisees are required to purchase goods, services, supplies, fixtures, equipment, and inventory only from suppliers that Checkersrallys has approved. However, Checkersrallys is not currently an approved supplier for any items, except that they may, from time to time, sell used modular restaurants and restaurant equipment to Checkersrallys franchisees.

To ensure uniformity and quality, franchisees must operate their restaurants in strict accordance with Checkersrallys' methods, standards, and specifications. This extends to all aspects of the restaurant, including the food products, beverages, ingredients, uniforms, packaging materials, menus, forms, labels, equipment, and other supplies used in the restaurant's development and operation. These items must conform to Checkersrallys' specifications and quality standards and/or be purchased from approved suppliers.

If a franchisee wishes to use a brand or supplier not already approved, they must notify Checkersrallys and submit sufficient information for evaluation. Checkersrallys has the right to charge fees to cover their costs for this review. They will then notify the franchisee of their decision within 60 days. Checkersrallys may also set required, optional, or test menu items and may impose limits on the number of suppliers or brands for any items. They may also revoke approval of any supplier by notifying the supplier and the franchisee in writing.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.