If I develop a Checkersrallys Restaurant under the Development Agreement, to what restrictions on goods and services will I be subject?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
The Development Agreement contains no provisions restricting the goods and services you offer. However, with respect to each Restaurant developed under the Development Agreement, you will be subject to the restrictions on goods and services contained in our thencurrent standard franchise agreement. The restrictions in our current Franchise Agreement are set out above.
Franchise Agreement
We require you to sell all food, beverage and other products and services that we determine from time to time to be appropriate for your Franchised Restaurant, including required menu items as we may set from time to time. From time to time, we may designate menu items as being required or optional and also may introduce test menu items on a required or optional basis. You are not restricted as to the customers whom you may serve at the Franchised Restaurant.
The Franchise Agreements requires that you only conduct business with customers at the Franchised Restaurant and may not engage in any catering or delivery operations without our approval. You may be allowed to offer certain Delivered Products for delivery if you meet our requirements and elect to participate in our optional Delivery Program.
Your Franchised Restaurant may not offer any products or services (including promotional items) not authorized by us for Restaurants without our prior written approval. We have the right to change the types of authorized goods and services, and there are no limits on our right to make changes. You may not use your Franchised Restaurant for any purpose other than the operation of a Restaurant in compliance with the Franchise Agreement.
You must at all times maintain an inventory of approved food products, beverages, ingredients and other products sufficient in quantity, quality and variety to operate the
Franchised Restaurant in accordance with our prescribed standards and specifications for Checkers Restaurants or Rally's Restaurants.
We may conduct market research to determine consumer trends and salability of new food products and services. You must participate in our market research programs by test marketing new food products and services in your restaurant and providing us with timely reports and other relevant information regarding such market research. You must purchase a reasonable quantity of such test products and make a reasonable effort to sell them.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 65–66)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the Development Agreement itself does not contain specific restrictions on the goods and services you can offer. However, each Checkersrallys Restaurant developed under the Development Agreement will be subject to the restrictions outlined in Checkersrallys's then-current standard franchise agreement.
The franchise agreement mandates that you sell all food, beverage, and other products and services that Checkersrallys deems appropriate for the restaurant, including required menu items that Checkersrallys may set from time to time. Checkersrallys can designate menu items as required or optional and introduce test menu items on either a required or optional basis. You are not restricted as to the customers whom you may serve at the Franchised Restaurant.
You must conduct business with customers at the restaurant location and may not engage in catering or delivery operations without Checkersrallys's approval, unless you meet their requirements and participate in their optional Delivery Program. You cannot offer any products or services (including promotional items) not authorized by Checkersrallys without prior written approval, and Checkersrallys has the right to change the types of authorized goods and services with no limits on their right to make changes. You also cannot use your Franchised Restaurant for any purpose other than the operation of a Restaurant in compliance with the Franchise Agreement.
Furthermore, you must maintain an inventory of approved food products, beverages, ingredients, and other products sufficient in quantity, quality, and variety to operate the restaurant according to Checkersrallys's standards. You must also participate in Checkersrallys's market research programs by test marketing new food products and services in your restaurant and providing them with timely reports and other relevant information. This includes purchasing a reasonable quantity of such test products and making a reasonable effort to sell them.