Where in the Checkersrallys Franchise Agreement can I find information about 'Your Protected Area'?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
2.02 Your Protected Area.During the Term, and subject to the following Section 2.03, we will not operate (directly or through an Affiliate), or grant to a third party the right to operate, any "Checkers" or "Rally's"-branded restaurant located
within a particular geographic area (the "Protected Area"). The Protected Area, as defined by us, shall be the lesser of: (i) a one (1) mile radius from the center of the Premises if your Franchised Restaurant is located in a suburban or rural area or (ii) an area immediately surrounding the Premises that encompasses a population of twenty thousand (20,000) residents if your Franchised Restaurant is located in an urban area. Notwithstanding the foregoing, we may, from time to time during the Term, at our sole option and upon providing notice to you, reduce or otherwise modify the size and/or boundaries of the Protected Area to encompass a geographic area immediately surrounding the Premises consisting of thirty thousand (30,000) residents. If at any time during the Term the population in the Protected Area becomes less than thirty thousand (30,000) residents, we have no obligation to expand or modify the size and/or boundaries of the Protected Area to include a greater population. You and we agree that upon any modification to the size and/or boundaries of the Protected Area pursuant to this Section, we are authorized to amend this Agreement to reflect such modification. You and we hereby agree that upon the amendment of this Agreement by us in accordance with this Section, the particular geographic area identified thereon shall be deemed the Protected Area under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Section 2.02 of the Franchise Agreement outlines the details of 'Your Protected Area'. This section specifies that during the term of the agreement, Checkersrallys will not operate or grant to a third party the right to operate another Checkersrallys-branded restaurant within a defined geographic area. This protection is subject to conditions outlined in Section 2.03.
The specifics of the protected area are further detailed in Item 22, under the section defining the Protected Area. For restaurants in suburban or rural areas, the protected area extends to a one-mile radius from the center of the franchised restaurant's premises. In urban areas, the protected area encompasses a population of 20,000 residents immediately surrounding the premises.
However, Checkersrallys retains the right to modify the size and boundaries of the protected area, potentially reducing or changing it to cover an area with 30,000 residents. If the population within the protected area falls below 30,000, Checkersrallys is not obligated to expand the protected area. Any modifications to the protected area can be reflected through an amendment to the Franchise Agreement. This clause highlights that the protected area is not guaranteed and can change during the term of the agreement, impacting the franchisee's market exclusivity.