Is a Checkersrallys franchisee (or their Operating Partner) allowed to engage in other business activities that require substantial management responsibility?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
You (or your Operating Partner): (a) shall exert your full-time and best efforts to the development and operation of your Franchised Restaurant and all other Restaurants you own; and (b) may not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitments or otherwise may conflict with your obligations under the Franchise Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 64–65)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee or their Operating Partner is restricted from engaging in other business activities. The franchisee (or their Operating Partner) must exert their full-time and best efforts to the development and operation of their franchised restaurant and all other restaurants they own.
Specifically, the franchisee (or their Operating Partner) may not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitments. This restriction also applies if the other business or activity may otherwise conflict with the franchisee's obligations under the Franchise Agreement.
This requirement ensures that the Checkersrallys franchisee and their Operating Partner are fully dedicated to the success of the Checkersrallys business. It protects Checkersrallys's interests by preventing franchisees from diverting their attention and resources to other ventures that could potentially harm the performance of the franchised restaurant.