Can Checkersrallys change or dissolve the Franchisee Advisory Council?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither we nor NPF, Inc. have created an advisory council and we and NPF, Inc. are not obligated to seek the advice of owners of Restaurants, including franchisees, by formal (e.g., advisory council or other representative body) or informal means with respect to the creative concepts and media used for programs financed by the NPF. However, because we value input from the franchise network, we (and/or NPF, Inc.) may choose to seek such advice from operators of Restaurants, and so have established a Franchisee Advisory Council that includes a marketing subcommittee. We appoint the members of the Franchisee Advisory Council, which includes both "Checkers" and "Rally's" franchisees. We have the right to change or dissolve these groups.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys has the right to change or dissolve the Franchisee Advisory Council. Checkersrallys states that neither they nor NPF, Inc. are obligated to seek advice from restaurant owners, including franchisees, through formal or informal means regarding creative concepts and media used for programs financed by the NPF. However, Checkersrallys values input from the franchise network and may choose to seek advice from restaurant operators.
Checkersrallys has established a Franchisee Advisory Council that includes a marketing subcommittee, with members appointed by Checkersrallys, consisting of both "Checkers" and "Rally's" franchisees. This council is intended to provide a platform for franchisee input, but Checkersrallys retains ultimate control over its composition and existence.
This unilateral control over the Franchisee Advisory Council is not uncommon in franchising. While franchisee advisory councils can be valuable for franchisors to gather feedback and improve the system, the franchisor typically reserves the right to make final decisions and manage the council as they see fit. Prospective franchisees should recognize that while their input may be considered, Checkersrallys is not obligated to follow the council's recommendations.