Does Checkersrallys impose fees to evaluate proposed suppliers or items?
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. We may impose limits on the number of suppliers (which may include us or our Affiliates) and/or brands for any of the foregoing items.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, if a franchisee proposes to use a brand or supplier not already approved by Checkersrallys, they must first notify Checkersrallys and submit sufficient information, specifications, and samples for evaluation. This allows Checkersrallys to determine if the brand meets their standards or if the supplier meets their criteria.
The FDD states that Checkersrallys has the right to charge reasonable fees to cover their costs associated with this evaluation process. Checkersrallys will then notify the franchisee of their decision within a reasonable time frame. They may also set procedures for submitting approval requests and impose obligations on suppliers, potentially requiring these obligations to be included in a written agreement.
This policy ensures that Checkersrallys maintains control over the quality and consistency of products and services used within its franchise system. For a prospective franchisee, this means they may incur additional costs if they wish to use non-approved brands or suppliers, and approval is not guaranteed. It is important to discuss these potential fees and approval processes with Checkersrallys during the due diligence phase to fully understand the financial implications and requirements.