Can Checkersrallys franchisees reorder from a brand or supplier after receiving notice that it is no longer approved?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
You will use in the development and operation of the Franchised Restaurant and/or offer for sale at the Franchised Restaurant only food products, beverages, ingredients, uniforms, packaging materials, menus, forms, labels, equipment, smallwares and other supplies and other products and services that conform to our specifications and quality standards and/or are purchased from suppliers, distributors and service providers (collectively, "supplier" or "suppliers") we approve (which may include us and/or any of our affiliates). We may modify the list of approved brands and/or suppliers. After notice of such modification, you may not reorder any brand or from any supplier that is no longer approved.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees are prohibited from reordering any brand or from any supplier after receiving notice that they are no longer approved by Checkersrallys. This restriction is in place to ensure that all Checkersrallys restaurants maintain consistent quality and standards by using only approved products and suppliers.
This requirement means that a Checkersrallys franchisee must stay informed about any modifications to the approved supplier list and immediately cease ordering from any delisted supplier. Failure to comply with this requirement could result in a breach of the franchise agreement and potential penalties.
Checkersrallys retains the right to modify the list of approved brands and suppliers, and franchisees are responsible for staying updated on these changes. This system allows Checkersrallys to maintain control over the supply chain and ensure that all products used in the restaurants meet the company's standards. Franchisees need to have contingency plans in place to quickly switch to alternative approved suppliers if one is removed from the list.