Does Checkersrallys currently act as an approved supplier for any items?
Checkersrallys Franchise · 2025 FDDAnswer 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.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)
What This Means (2025 FDD)
According to the 2025 Checkersrallys FDD, franchisees are generally required to purchase goods, services, supplies, fixtures, equipment, and inventory only from suppliers that Checkersrallys has approved. However, franchisees are not required to purchase or lease anything directly from Checkersrallys or its affiliates, though Checkersrallys and its affiliates can be approved suppliers for items. Currently, Checkersrallys is not an approved supplier for any items with the exception that Checkersrallys may, from time to time, sell used modular restaurants and restaurant equipment to Checkers and Rally's franchisees.
This means that while Checkersrallys mandates that franchisees buy from approved suppliers to maintain quality and uniformity, it generally does not directly supply these items itself. The exception to this is that Checkersrallys may sell used modular restaurants and restaurant equipment. This gives Checkersrallys some flexibility to liquidate used assets while providing franchisees with a potential option for acquiring equipment.
For a prospective franchisee, this indicates that the majority of required purchases will be from third-party suppliers approved by Checkersrallys. Franchisees need to be aware of the approved supplier list and any potential changes to it, as they are obligated to purchase from these sources. The FDD also states that Checkersrallys may modify the list of approved brands and/or suppliers, and after notice of such modification, franchisees may not reorder any brand or from any supplier that is no longer approved. This system allows Checkersrallys to maintain standards across all franchise locations, but it also limits the franchisee's choice of suppliers.