What is the definition of 'Designated Area' in the Checkersrallys franchise agreement?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
If you have suggested a location for the Franchised Restaurant which we approve before or concurrently with the execution of the Franchise Agreement, the location will be identified in the Franchise Agreement. If we and you have not agreed upon an approved location for the Franchised Restaurant before signing the Franchise Agreement, then you must select a site for the Franchised Restaurant within the geographic area we designate ("Designated Area"). You must, within 180 days after the date of the Franchise Agreement, locate and submit for our approval a site acceptable to us within the Designated Area for the Franchised Restaurant. We will approve or disapprove each site that you propose according to our general criteria for selection of a Checkers Restaurant or Rally's Restaurant site. The site must meet our criteria for demographic characteristics; traffic patterns; parking; character of neighborhood; competition from, proximity to, and nature of other businesses; size; appearance; and other physical and commercial characteristics. We will use reasonable efforts to help analyze your market area, to help determine site feasibility, and to assist in designating the location, although we will not conduct site selection activities for you. We will provide you with our standard site selection criteria and on-site evaluations of sites, as we deem appropriate. If you enter into a Development Agreement with us, you must select sites within your specified Development Area and we will approve them in accordance with our then current criteria for selection of a Checkers Restaurant or Rally's Restaurant site.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, the 'Designated Area' refers to a specific geographic area that Checkersrallys designates for the franchisee to locate a site for their franchised restaurant. This designation occurs if Checkersrallys and the franchisee have not agreed upon an approved location before signing the Franchise Agreement.
The franchisee is then responsible for selecting a site within this Designated Area and submitting it for Checkersrallys's approval within 180 days from the date of the Franchise Agreement. Checkersrallys will assess the proposed site based on their general criteria, considering factors such as demographic characteristics, traffic patterns, parking, neighborhood character, competition, proximity to other businesses, size, appearance, and other physical and commercial characteristics.
Checkersrallys offers assistance in analyzing the market area and determining site feasibility, but they do not conduct site selection activities directly for the franchisee. If the franchisee enters into a Development Agreement, they must select sites within their specified Development Area, which Checkersrallys will approve according to their current site selection criteria. This process ensures that the location aligns with Checkersrallys's standards for a successful restaurant operation.