Can Checkersrallys establish Checkersrallys-branded restaurants at Non-Traditional Sites within the Protected Area?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Specifically, by way of example and without limitation, we reserve the following rights: (a) to establish and operate, and grant to others the right to operate, "Checkers" and "Rally's"-branded restaurants at locations outside the Protected Area, on such terms and conditions as we deem appropriate (you acknowledge that such "Checkers" and "Rally's"-branded restaurants may be in direct competition with your Franchised Restaurant, without regard to any adverse effects of such activities on your Franchised Restaurant and without any obligation or liability to you); (b) to establish and operate, and grant to others the right to operate, "Checkers" and "Rally's" branded restaurants, or other restaurants using any part or all of the System and/or Marks, that are located at or operated from Non-Traditional Sites within or outside the Protected Area;
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, Checkersrallys retains the right to establish and operate Checkersrallys-branded restaurants, or other restaurants using any part or all of the System and/or Marks, that are located at or operated from Non-Traditional Sites within or outside the Protected Area. This means that even if a franchisee has a protected area, Checkersrallys can still open restaurants at non-traditional locations within that area.
Non-Traditional Sites are defined as locations that generate their own customer traffic, separate from the surrounding area. Examples of these sites include military bases, large retail outlets, transportation venues like airports, sports and entertainment venues, industrial complexes, hotels, educational facilities, casinos, hospitals, governmental institutions, amusement parks, grocery stores, mobile food trucks, and co-branding locations.
This reservation of rights has significant implications for prospective franchisees. Even with a protected area, a franchisee could face competition from a Checkersrallys restaurant at a non-traditional site within their territory. This could impact the franchisee's revenue and profitability. Franchisees should carefully consider the potential for such competition when evaluating a Checkersrallys franchise opportunity.