Does the Checkersrallys Franchisor retain rights regarding the Marks and System when a franchisee operates at a Non-Traditional Site?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that it will not receive any territorial protection or exclusivity under this Addendum or the Franchise Agreement when operating the Restaurant at a Non-Traditional Site and that Franchisor and its Affiliates retain all rights and discretion with respect to the Marks, the System, the sale of products and services similar or dissimilar to those offered by "Checkers" and "Rally's"-branded restaurants, and the operation or franchising of "Checkers" and "Rally's"-branded restaurants anywhere located or to be located, and may engage in any business activities whatsoever, whenever and wherever they desire during the Term.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, Checkersrallys retains all rights and discretion with respect to the Marks and the System, even when a franchisee operates at a Non-Traditional Site. The franchisee acknowledges and agrees that they will not receive any territorial protection or exclusivity when operating at a Non-Traditional Site. This means Checkersrallys can operate or franchise other Checkersrallys-branded restaurants, or sell similar products and services, without restriction.
This lack of exclusivity at Non-Traditional Sites allows Checkersrallys to maximize its brand presence and market penetration. Non-Traditional Sites are defined as locations that generate their own customer traffic, such as military bases, airports, entertainment venues, or co-branded locations.
For a prospective franchisee, this means operating at a Non-Traditional Site carries a higher risk of direct competition from other Checkersrallys outlets or alternative distribution channels. The franchisee essentially has no protected territory and must rely on the specific characteristics of the Non-Traditional Site to drive business, rather than any exclusive rights granted by the franchise agreement. It is important for a franchisee to carefully evaluate the potential customer base and competitive landscape of any Non-Traditional Site before investing in a Checkersrallys franchise.