If a Checkersrallys franchisee elects to use a pre-fabricated modular structure, what specific obligations must they fulfill regarding suppliers and compliance?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
If you elect, at your option, to use a pre-fabricated modular structure as the Franchised Restaurant's building, then you must: (i) purchase the modular components from, and have the structure erected and installed by, only suppliers we approve; and (ii) ensure that all aspects of the modular structure and its installation comply with your obligations under this Agreement and all applicable laws, regulations, ordinances, building codes, permit requirements and use requirements and restrictions.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, if a franchisee chooses to use a pre-fabricated modular structure for their restaurant building, they have specific obligations regarding suppliers and compliance. The franchisee must purchase the modular components from suppliers approved by Checkersrallys. Furthermore, the franchisee is obligated to ensure that all aspects of the modular structure and its installation adhere to the franchisee's obligations under the Franchise Agreement.
In addition to supplier restrictions, the franchisee must ensure compliance with all applicable laws, regulations, ordinances, building codes, permit requirements, and use requirements and restrictions. This means the franchisee is responsible for making sure the modular structure meets all local and federal guidelines for construction and operation.
These requirements are typical in franchising, as franchisors like Checkersrallys need to maintain brand consistency and ensure safety and legal compliance across all locations. By mandating approved suppliers and adherence to regulations, Checkersrallys aims to control the quality and uniformity of its restaurants, regardless of the construction method used.