Does the Checkersrallys franchisee have rights to benefit from any other business activity Checkersrallys or its affiliates may undertake?

According to Checkersrallys's 2025 Franchise Disclosure Document, the franchisee has very limited rights to benefit from any other business activity that Checkersrallys or its affiliates may undertake. The agreement specifies that the franchisee's rights are non-exclusive, except as expressly granted in Section 2.02, and the franchisee has no rights to participate in or benefit from any other business activity Checkersrallys or its affiliates may undertake, regardless of whether such activity involves the Marks or the System. The franchisee also waives all claims related to Checkersrallys's or its affiliates' activities in connection with their reserved rights.

Checkersrallys retains all rights and discretion with respect to the Marks, the System, the sale of products and services similar or dissimilar to those offered by Checkersrallys-branded restaurants, and the operation or franchising of Checkersrallys-branded restaurants anywhere located or to be located, and may engage in any business activities whatsoever. This includes the right to establish and operate Checkersrallys-branded restaurants outside the Protected Area, at Non-Traditional Sites, and through alternative channels of distribution, potentially in direct competition with the franchisee's restaurant, without any obligation or liability to the franchisee.

This lack of exclusivity and the broad reservation of rights by Checkersrallys are common in franchising. It allows Checkersrallys to adapt to market changes and pursue new business opportunities without being restricted by individual franchise agreements. However, it also means that a Checkersrallys franchisee's business can be impacted by decisions made by Checkersrallys, such as opening new locations nearby or selling products through other channels, without the franchisee having any recourse.