If a Checkersrallys restaurant is located in a suburban area, what is the radius of the protected area?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
nchise Agreement does not provide you with any options, rights of first refusal or similar rights to acquire additional franchises.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands we control. However, you may receive a limited protected area, as follows: we will not operate (directly or through an affiliate), or grant to a third party the right to operate, any Checkers Restaurant or Rally's Restaurant located within the particular geographic area identified in Exhibit B attached to the Franchise Agreement (the "Protected Area"). The Protected Area, as defined by us, will be the lesser of: (i) a one (1) mile radius from the center of the Premises if your Franchised Restaurant is located in a suburban or rural area or (ii) an area immediately surrounding the Premises that encompasses a population of 20,000 residents if your Franchised Restaurant is located in an urban area. We do not provide a Protected Area to franchisees that operate Restaurants from Non-Traditional Sites.
Except for the rights we expressly grant you under the Franchise Agreement, we and all of our affiliates (and our respective successors and assigns, by purchase, merger, consolidation or otherwise) retain all of our rights and discretion with respect to the Marks, the System, Restaurants anywhere in the world, and the right to engage in any business whatsoever (without compensation to you), including the rights to:
(a) establish and operate, and grant to others the right to operate,
Restaurants at locations outside the Protected Area, on terms and conditions we deem appropriate;
- (b) establish and operate, and grant to others the right to operate, Restaurants, or other restaurants using any part or all of the System and/or Marks, that are located at or operated from Non-Traditional Sites within or outside the Protected Area;
- (c) sell any products or services under the Marks or under any other trademarks, service marks or trade dress, through alternative channels of distribution, wherever located or operating (including the internet or similar electronic media and supermarkets);
Source: Item 12 — TERRITORY (FDD pages 57–60)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees may receive a limited protected area. If a Checkersrallys restaurant is located in a suburban or rural area, the protected area will be a one-mile radius from the center of the premises. However, if the restaurant is in an urban area, the protected area is defined as the area immediately surrounding the premises that encompasses a population of 20,000 residents. Checkersrallys does not provide a protected area to franchisees operating from non-traditional sites.
It's important to note that Checkersrallys retains the right to modify the size and boundaries of the protected area during the term of the franchise agreement. This modification can occur if Checkersrallys provides notice to the franchisee and reduces the protected area to encompass a geographic area immediately surrounding the premises consisting of a population of 20,000 residents. If the population within the protected area drops below 20,000 residents, Checkersrallys has no obligation to expand or modify the protected area.
This protected area is not an exclusive territory, meaning franchisees may face competition from other franchisees, company-owned outlets, alternative distribution channels, or competitive brands controlled by Checkersrallys. The continuation of the protected area is not dependent on achieving a certain sales volume or market penetration. Prospective franchisees should carefully consider the potential for competition and the possibility of changes to the protected area when evaluating the Checkersrallys franchise opportunity.