Is Checkersrallys expressly and specifically prohibited from operating and changing the system in any manner?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
2.04 Reservation of Rights. Except as expressly provided in this Agreement, we and all of our Affiliates (and our respective successors and assigns, by purchase, merger, consolidation or otherwise) retain all of our rights and discretion with respect to the Marks, the System and Restaurants anywhere in the world, and the right to engage in any business whatsoever, including the right to: (a) operate, and grant to others the right to operate, "Checkers" and "Rally's"-branded restaurants at such locations and on such terms and conditions as we deem appropriate; (b) sell any products or services under the Marks or under any other trademarks, service marks or trade dress, through alternative channels of distribution, including without limitation, the internet or similar electronic media and supermarkets; (c) operate, and grant to others the right to operate, restaurants identified by trademarks, service marks or trade dress, other than the Marks, (including the [INSERT
BRAND: "Checkers"/"Rally's"] name and mark) pursuant to such terms and conditions as we deem appropriate; and (d) be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction), by a business providing products and services similar to those provided at "Checkers" or "Rally's"-branded restaurants, or by another business, even if such business operates, franchises and/or licenses Competitive Businesses in the Development Area.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys retains significant rights and discretion regarding the Marks, the System, and Restaurants. Except as expressly provided in the franchise agreement, Checkersrallys and its Affiliates maintain all rights to the Marks, the System, and Restaurants globally. This includes the right to operate and grant others the right to operate Checkersrallys-branded restaurants under terms and conditions they deem appropriate. They can also sell products or services under the Marks through alternative channels like the internet and supermarkets.
Checkersrallys also has the right to operate or franchise restaurants with different trademarks, service marks, or trade dress other than the Checkersrallys Marks. Additionally, Checkersrallys can be acquired by a business providing similar products/services, even if that business operates or franchises Competitive Businesses within the franchisee's Development Area.
This reservation of rights indicates that Checkersrallys is not expressly prohibited from making changes to the System or its operations. Instead, they retain broad discretion to evolve the brand, explore new markets, and adapt to changing business conditions. For a prospective franchisee, this means Checkersrallys has the flexibility to modify the menu, marketing strategies, or operational procedures, which could impact the franchisee's business.
However, the agreement does provide the franchisee with a Development Area where Checkersrallys will not operate or grant franchises to others, with some exceptions. These exceptions include locations that generate independent customer traffic, such as military bases, transportation venues, sports venues, educational facilities, and co-branding locations. It is important for a prospective franchisee to understand the scope of these reserved rights and how they might affect their franchise operations and market.