Does Checkersrallys currently intend to establish Checkers Restaurants in a Rally's franchisee's general market area?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Company-owned and/or franchised Checkers Restaurants and Rally's Restaurants may compete with your Franchised Restaurant generally, although we do not currently intend to establish or franchise Checkers Restaurants in any Rally's franchisee's general market area, or Rally's Restaurants in any Checkers franchisee's general market area. Consequently, we do not anticipate any conflict(s) between the 2 systems. We intend to resolve any potential conflicts that may arise between a Checkers Restaurant and a Rally's Restaurant on a case-by-case basis.
We have integrated and will continue to integrate aspects of the Checkers and Rally's concepts. Although we intend to maintain separate brand names, outlets of both brands offer many of the same menu items and use a common restaurant design we have developed for both systems.
We have entered into agreements with independent third party food manufacturers and suppliers to produce, offer and sell certain food products to be distributed under the Marks in supermarkets, club stores, grocery stores, vending racks, and other retail outlets that may be located within the general market area of your Franchised Restaurant.
Source: Item 12 — TERRITORY (FDD pages 57–60)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys does not currently intend to establish or franchise Checkers Restaurants in any Rally's franchisee's general market area, or Rally's Restaurants in any Checkers franchisee's general market area. The FDD states that Checkersrallys does not anticipate any conflicts between the two systems as a result. However, Checkersrallys intends to resolve any potential conflicts that may arise between a Checkers Restaurant and a Rally's Restaurant on a case-by-case basis.
Despite maintaining separate brand names, Checkersrallys has integrated aspects of the Checkers and Rally's concepts. Both brands offer many of the same menu items and use a common restaurant design developed for both systems. This integration suggests that while Checkersrallys aims to avoid direct competition between the two brands, they are managed in a coordinated manner.
It is important to note that Checkersrallys has agreements with third-party food manufacturers and suppliers to distribute products under the Checkers and Rally's marks in various retail outlets, including supermarkets and grocery stores, which may be located within a franchisee's general market area. This means that while direct franchise competition is not intended, franchisees may still face competition from Checkersrallys-branded products sold through other channels.