If a Checkersrallys franchisee participates in the optional Delivery Program, does Checkersrallys provide exclusivity in Delivery Areas?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not provide exclusivity in Delivery Areas if you participate in our optional Delivery Program. We, other franchisees, and/or DSPs may, directly or indirectly: (i) provide delivery or catering services from other Checkers and/or Rally's restaurants and (ii) advertise under the Marks, in each case within and outside of the Delivery Areas and to customers near your Franchised Restaurant, including in your Protected Area, if any.
Source: Item 12 — TERRITORY (FDD pages 57–60)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees who participate in the optional Delivery Program do not receive exclusive delivery areas. This means that Checkersrallys, other franchisees, and/or Delivery Service Providers (DSPs) can provide delivery or catering services from other Checkersrallys restaurants within and outside of the franchisee's designated delivery area. They can also advertise under the Checkersrallys marks in those same areas, including the franchisee's protected area, if any exists.
This lack of exclusivity means that a Checkersrallys franchisee could face direct competition within their delivery area from other Checkersrallys restaurants, potentially impacting their delivery sales and overall revenue. The franchisee's protected area, if any, does not guarantee exclusive delivery rights, as other entities can still provide delivery services and advertise within that area.
Prospective franchisees should carefully consider the implications of this non-exclusivity when evaluating the potential profitability of the Delivery Program. It is important to assess the competitive landscape and the potential impact of other Checkersrallys restaurants and delivery providers operating in the same area. Franchisees should also inquire about Checkersrallys's plans for managing delivery services and advertising to ensure a fair and competitive environment.