Does the Checkersrallys Franchise Agreement provide franchisees with options, rights of first refusal, or similar rights to acquire additional franchises?

According to the 2025 Checkersrallys Franchise Disclosure Document, the Franchise Agreement does not provide franchisees with any options, rights of first refusal, or similar rights to acquire additional franchises. The agreement grants the franchisee the right to operate a restaurant at a specific location. If a location isn't agreed upon before signing, the franchisee must find a suitable site within a designated area, but this area is solely for site selection and does not provide any territorial exclusivity or protection. The franchisee cannot operate the restaurant at any site other than the approved premises or relocate without Checkersrallys's written consent.

While the standard Franchise Agreement does not offer these rights, a Development Agreement is available. This agreement grants the franchisee the right to develop a pre-determined number of Checkers Restaurants or Rally's Restaurants within a specific geographical area, as detailed in Exhibit A of the Development Agreement. The size of the development area depends on factors like population density and the area's residential or commercial nature. The number of restaurants to be developed and their opening dates are outlined in the Development Schedule, also found in Exhibit A.

It is important to note that even with a Development Agreement, Checkersrallys does not provide an exclusive territory within the Development Area. Franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels. However, as long as the franchisee complies with the Development Agreement and other agreements, Checkersrallys will grant them at least the cumulative number of franchises specified in Exhibit A. Checkersrallys also commits not to operate or grant the right to operate any Checkers or Rally's restaurants within the Development Area, with some exceptions for existing restaurants, non-traditional sites, and acquired restaurants.