What costs can Checkersrallys charge a franchisee for evaluating a proposed new brand or supplier?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, if a franchisee proposes to use a brand or supplier not already approved by Checkersrallys, the franchisee must notify Checkersrallys and provide sufficient information for evaluation. Checkersrallys has the right to charge reasonable fees to cover their costs associated with this evaluation. Currently, Checkersrallys only charges for out-of-pocket expenses incurred during the evaluation process.
This means that if a Checkersrallys franchisee wants to source a product from a new supplier, they need to get approval from Checkersrallys. Checkersrallys can then charge the franchisee fees to cover the expenses they incur while assessing the new supplier. This could include costs related to testing the supplier's products or visiting their facilities.
It is important for prospective Checkersrallys franchisees to understand that while the fees are currently limited to out-of-pocket expenses, Checkersrallys retains the right to charge reasonable fees to cover their costs in the future. Franchisees should inquire about what these costs might entail and how they are calculated to avoid unexpected expenses. Franchisees should also be aware that Checkersrallys will notify them of their decision regarding the proposed supplier within 60 days.