According to the Checkersrallys Franchise Agreement, where will the franchised restaurant be located?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
n of you or any Owner as legally disabled, or upon or after your death or the death of any of your Owners by will, disclaimer of the laws of intestate succession or otherwise; or (5) any foreclosure upon your Franchised Restaurant or the transfer, surrender or loss by you or your Owners of possession, control or management of your Franchised Restaurant.
2. GRANT OF RIGHTS.
2.01 Grant of Franchise.You have applied for a franchise to own and operate a Restaurant at a location we approve, which will be identified on Exhibit B (the "Premises"). Subject to the terms of this Agreement, we grant to you the right, and you assume the obligation, to operate a Restaurant at the Premises and to use the System solely in connection therewith, for a term of twenty (20) years, starting on the Effective Date (the "Term"). You may not conduct the business of the Franchised Restaurant or use the System at any site other than the Premises, or relocate the Franchised Restaurant, without our prior consent. The Franchised Restaurant may not be used for any purpose other than the operation of a Restaurant in compliance with this Agreement. You may conduct business only with customers at the Franchised Restaurant and may not engage in any catering or delivery businesses without or prior consent which may be withheld for any reason.
2.02 Your Protected Area.During the Term, and subject to the following Section 2.03, we will not operate (directly or through an Affiliate), or grant to a third party the right to operate, any "Checkers" or "Rally's"-branded restaurant located
within a particular geographic area (the "Protected Area"). The Protected Area, as defined by us, shall be the lesser of: (i) a one (1) mile radius from the center of the Premises if your Franchised Restaurant is located in a suburban or rural area or (ii) an area immediately surrounding the Premises that encompasses a population of twenty thousand (20,000) residents if your Franchised Restaurant is located in an urban area. Notwithstanding the foregoing, we may, from time to time during the Term, at our sole option and upon providing notice to you, reduce or otherwise modify the size and/or boundaries of the Protected Area to encompass a geographic area immediately surrounding the Premises consisting of thirty thousand (30,000) residents. If at any time during the Term the population in the Protected Area becomes less than thirty thousand (30,000) residents, we have no obligation to expand or modify the size and/or boundaries of the Protected Area to include a greater population.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the franchised restaurant will be located at a site that Checkersrallys approves. The specific location, referred to as the "Premises," will be identified on Exhibit B of the Franchise Agreement.
The Franchise Agreement grants the franchisee the right and obligation to operate a Checkersrallys restaurant at the approved Premises and to use the Checkersrallys system solely in connection with that location. The franchisee is prohibited from conducting business or using the system at any other site without prior consent from Checkersrallys. Additionally, the franchisee cannot relocate the restaurant without Checkersrallys's approval.
If a location hasn't been agreed upon before signing the Franchise Agreement, the franchisee is responsible for selecting a site within a designated area outlined in Exhibit B. The franchisee must then obtain Checkersrallys's written approval before signing any lease or agreement for the site. The franchisee has 180 days from the Effective Date of the agreement to find and submit a site for approval. Checkersrallys will offer reasonable assistance in analyzing the market area and determining site feasibility but will not conduct site selection activities for the franchisee. Checkersrallys will not unreasonably withhold approval of a site that meets its criteria.