What mandatory specifications, standards, and operating procedures must a Checkersrallys franchisee comply with regarding the appearance, function, cleanliness, and operation of a Restaurant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
he supplier and you in writing.
Specifications, Standards and Procedures
Each aspect of the interior and exterior appearance, layout, decor, services, equipment and operation of your Franchised Restaurant is subject to our specifications and standards. You must comply with all mandatory specifications, standards and operating procedures (whether contained in the Operations Manual or any other written communication) relating to the appearance, function, cleanliness and operation (including days and hours of operation) of a Restaurant.
Advertising
You must submit to us for our prior approval, samples of all advertising and promotional materials not prepared or previously approved by us and that vary from our
standard advertising and promotional materials. You may not use any advertising or promotional materials that we have disapproved.
You may not promote, offer or sell any products or services relating to your Franchised Restaurant, nor use any of the Marks (defined in Item 13 below), through the Internet without our consent, which consent may be withheld for any reason or no reason. In connection with any such consent, we may establish such requirements as we deem appropriate, including (a) obtaining our prior written approval of any Internet domain name and home page addresses; (b) submission for our approval of all Web site pages, materials and content; (c) use of all hyperlinks and other links; (d) restrictions on use of any materials (including text, video clips, photographs, images and sound bites) in which any third party has any ownership interest; and (e) obtaining our prior written approval of any modifications.
Gift Card and Similar Programs
You must issue and honor/redeem gift certificates, coupons, and gift, loyalty, and affinity cards for Restaurants and participate in, and comply with the requirements of, our gift card and other customer loyalty, affinity, and similar programs.
Delivery Program
If you are qualified and elect to participate in our optional Delivery Program, you must only offer the Delivered Products we authorize and use the DSPs that we appoint. You must also purchase a printer from a supplier that we approve, which will be used to operate the Delivery Program from the Franchised Restaurant.
Order Ahead Program
If you are qualified and elect to participate in our optional Order Ahead Program, you must only offer the Order Ahead Products we authorize and use the service providers that we appoint. Currently, we require that you use our preferred vendor, Olo, if you enter the Order Ahead Program.
Insurance
During the term of the Franchise Agreement, you must maintain the following categories of insurance coverage in force at your sole expense, all containing at least the following minimum amounts of liability coverage: (a) general liability ($1,000,000 per occurrence and $2,000,000 aggregate); (b) automobile ($1,000,000 combined single limit) for owned and hired, non-owned liability; (c) umbrella liability ($5,000,000 per occurrence and aggregate) with employer's liability, general liability, and automobile liability scheduled as underlying policies; (d) property covering the Franchised Restaurant and personal property in an amount 100% of the full replacement cost of the Franchised Restaurant and personal property, and business income coverage covering 12 months of actual loss sustained; (e) workers' compensation (as required by statute); (f) employer's liability ($1,000,000/$1,000,000/$1,000,000); (g) employment practices liability ($1,000,000 per occurrence and aggregate limit); (h) cyber insurance ($1,000,000 per occurrence and aggregate limit); and (i) any other insurance policies as we may determine from time to time.
All insurance policies must: (1) be issued by carriers we approve with an A.M. Best Rating of not less than A VII; (2) contain such types and minimum amounts of coverage,
exclusions and maximum deductibles as we prescribe from time to time; (3) name us and our affiliates as additional insured; (4) provide for 30 days' prior written notice to us of any material modification, cancellation or expiration of such policy; (5) provide a waiver of subrogation in favor of us and our affiliates; and (6) include such other provisions as we may require. The minimum amount of liability coverage we prescribe in no way limits your liability to those minimum amounts. We may periodically increase the amounts of coverage required under these insurance policies and/or require different or additional insurance coverage (including reasonable excess liability insurance) at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances. These insurance policies must be primary to and without right of contribution from any other insurance policy purchased by us, our affiliates and our respective directors, officers, employees, shareholders, members, agents, successors and assigns (collectively, "indemnitees"); must not limit or reduce coverage for you if there is a claim by us or any one or more of the other indemnitees; and must extend to and provide indemnity for all of your indemnification obligations to us and the other indemnitees.
Accounting and Records
You must record all sales on electronic cash registers designated or approved by us. You may be required to use computer-based cash registers which are fully compatible with our computer system and which include an information interface capability to communicate electronically with our computer system. We may require you to obtain equipment, software and/or services to facilitate communications between your computer-based cash registers and our computer system. We have the right to use the data we collect for any purpose, except that we shall not provide financial data to third parties, outside of our system or network, in such a form that readily identifies the Franchised Restaurant, unless we are required to do so by law, regulation, or order. If we require you to use proprietary software, you agree to execute and comply with such software license agreements as we deem necessary to protect our interests, and you agree to pay such license, training, and maintenance fee as we deem reasonably appropriate.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees must adhere to specific standards and operating procedures to ensure uniformity and quality across all locations. Checkersrallys has the right to modify these standards at their discretion. These mandatory specifications, standards, and operating procedures are communicated through the Operations Manual or other written communications and cover all aspects of the restaurant, including its appearance, function, cleanliness, and operation, including days and hours of operation.
To maintain consistency, Checkersrallys requires franchisees to purchase or lease approved fixtures, furniture, equipment, signs, and supplies from approved suppliers. These items must be in new condition unless Checkersrallys provides written permission otherwise. Franchisees must also use only approved food products, beverages, ingredients, uniforms, packaging materials, menus, forms, labels, equipment, and other supplies that meet Checkersrallys's quality standards. The initial cost of these required purchases and leases is estimated to exceed 95% of the total initial investment, with ongoing costs also exceeding 95% of total operating expenses.
Furthermore, franchisees must develop their restaurants in compliance with all applicable federal, state, and local laws, including the Americans with Disabilities Act (ADA). While Checkersrallys may provide prototype plans, franchisees are responsible for ensuring that the final plans comply with all relevant codes and regulations. Any modifications to the prototype plans, especially those affecting dimensions or exterior design, require Checkersrallys's specific authorization. The architect and general contractor used for the restaurant's design and construction must also be approved by Checkersrallys.
Checkersrallys also mandates the use of designated or approved electronic cash registers, potentially requiring franchisees to obtain compatible computer-based systems for communication with Checkersrallys's computer system. Franchisees must also participate in Checkersrallys's gift card and customer loyalty programs. Any advertising and promotional materials not prepared or previously approved by Checkersrallys must be submitted for prior approval, and franchisees may not use any disapproved materials. These stringent requirements ensure that all Checkersrallys restaurants maintain a consistent brand image and operational standard.