Can Checkersrallys establish and operate Restaurants at Non-Traditional Sites within or outside the Protected Area?

According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys has the right to establish and operate restaurants, including those at Non-Traditional Sites, within or outside a franchisee's protected area. This means that even if a franchisee has a protected area, Checkersrallys can still open or allow others to open Checkersrallys restaurants at Non-Traditional Sites, such as in airports, universities, or stadiums, regardless of their proximity to the franchisee's location. This also applies to restaurants using any part or all of the Checkersrallys system and/or marks.

This lack of territorial exclusivity for Non-Traditional Sites is a significant factor for potential franchisees to consider. While a franchisee may have some protection against traditional Checkersrallys restaurants opening nearby, this protection does not extend to Non-Traditional locations. This could lead to competition within the franchisee's general market area, potentially impacting their sales and profitability.

Furthermore, Checkersrallys retains the right to sell products or services under the Checkersrallys marks through alternative channels of distribution, such as the internet or supermarkets, regardless of location. They can also operate restaurants under different trademarks. These rights allow Checkersrallys to explore various business avenues without compensating the franchisee. Prospective franchisees should carefully evaluate the potential impact of these factors on their investment and discuss any concerns with Checkersrallys before signing a franchise agreement.