If a Checkersrallys franchisee proposes to use a brand or supplier not already approved, what must they do before using them?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
If you propose to use any brand and/or supplier which is not then approved by us, you must first notify us and submit sufficient information, specifications and samples concerning such brand and/or supplier so that we can decide whether such brand complies with our specifications and standards and/or such supplier meets our approved supplier criteria. We have the right to charge reasonable fees to cover our costs. We will notify you of our decision within a reasonable period of time. We may prescribe procedures for the submission of requests for approval and impose obligations on suppliers, which we may require be incorporated in a written agreement.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkersrallys FDD, if a franchisee wants to use a brand or supplier not already approved by Checkersrallys, they must first notify Checkersrallys and submit sufficient information, specifications, and samples. This allows Checkersrallys to determine whether the brand complies with their standards and specifications, or if the supplier meets their criteria.
Checkersrallys has the right to charge reasonable fees to cover their costs associated with evaluating the proposed brand or supplier. Checkersrallys will then notify the franchisee of their decision within a reasonable time frame. Checkersrallys may also prescribe procedures for submitting approval requests and impose obligations on suppliers, potentially requiring these obligations to be included in a written agreement.
This process ensures that all products and services used at Checkersrallys restaurants meet the franchisor's standards, maintaining the brand's reputation and quality. It also allows Checkersrallys to control its supply chain and potentially benefit from relationships with approved suppliers, as they may receive payments, fees, or commissions from these suppliers. Franchisees must adhere to this process to maintain compliance with the franchise agreement and uphold the brand's standards.