For a Checkersrallys franchise, can franchisees purchase or lease approved fixtures, furniture, equipment, signs, and supplies from any supplier?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
3.05 Equipment, Furniture, Fixtures and Signs.You agree to purchase or lease all required equipment, furnishings, fixtures and signs for the Franchised Restaurant. You agree to purchase or lease only such types, brands and models of fixtures, furniture, equipment, signs and supplies which we approve for Restaurants as meeting our standards and specifications, including standards and specifications for quality, design, warranties, appearance, function and performance. You may purchase or lease approved types, brands or models of fixtures, furniture, equipment, signs and supplies only from suppliers approved by us (including us and any of our Affiliates). From time to time, we may modify the list of approved types, brands, models and/or suppliers, and you may not, after receipt of notice of such modification, initiate any new orders for, or reorder, any type, brand or model, or otherwise transact with any supplier, which is no longer approved. If you elect, at your option, to use a pre-fabricated modular structure as the Franchised Restaurant's building, then you must: (i) purchase the modular components from, and have the structure erected and installed by, only suppliers we approve; and (ii) ensure that all aspects of the modular structure and its installation comply with your obligations under this Agreement and all applicable laws, regulations, ordinances, building codes, permit requirements and use requirements and restrictions.
If you propose to purchase any fixtures, furniture, equipment, signs or supplies of a type, brand or model, or from a supplier that we have not previously approved, you must notify us and submit to us all information we may request concerning the proposed item or supplier. We may impose reasonable inspection and supervision fees on you to cover our costs associated with evaluating any proposed supplier or item you request us to consider approving for use by the Franchised Restaurant or the System.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees are required to purchase or lease all necessary equipment, furnishings, fixtures, and signs for their franchised restaurant. However, these items must be of types, brands, and models that Checkersrallys has approved as meeting their standards.
The FDD specifies that franchisees can only purchase or lease approved items from suppliers that Checkersrallys has also approved, which may include Checkersrallys itself or its affiliates. Checkersrallys retains the right to modify the list of approved types, brands, models, and/or suppliers, and franchisees are prohibited from initiating new orders or reordering from any supplier that is no longer approved after receiving notice of such modification.
If a franchisee wishes to purchase fixtures, furniture, equipment, signs, or supplies from a supplier not already approved, they must notify Checkersrallys and submit all requested information about the proposed item or supplier. Checkersrallys may charge reasonable inspection and supervision fees to cover the costs of evaluating any proposed supplier or item for approval.