What is the minimum number of Checkersrallys franchises that will be granted to me within the Development Area?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of the Development Agreement, as long as you and your affiliates are in compliance with the agreement and all other agreements with us or any of our affiliates (including Franchise Agreements signed under the Development Agreement), we will: (a) grant to you, in accordance with Section 3 of the Development Agreement, at least that cumulative number of franchises for Checkers Restaurants or Rally's Restaurants set forth in Exhibit A to the Development Agreement, all of which are to be located within the Development Area (the locations of which we will approve in accordance with our then current criteria for selection of a Checkers Restaurant or Rally's Restaurant site); and (b) not operate (directly or through an affiliate), nor grant the right to operate, any Checkers Restaurants or Rally's Restaurants located within the Development Area, except for: (1) franchises granted pursuant to the Development Agreement; (2) Restaurants open (or under commitment to open) as of the date of the Development Agreement; (3) Checkers Restaurants, Rally's Restaurants or other restaurants using any part or all of the System and/or Marks at Non-Traditional Sites; and (4) restaurants that we purchase (or as to which we purchase the rights as franchisor) that are part of another franchise system or chain, regardless whether such restaurants are converted to operations as Checkers Restaurants or Rally's Restaurants using any of the
Source: Item 12 — TERRITORY (FDD pages 57–60)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, if you enter into a Development Agreement, Checkersrallys will grant you at least the cumulative number of franchises for Checkers Restaurants or Rally's Restaurants set forth in Exhibit A to the Development Agreement. All of these franchises are to be located within the Development Area. The specific number of restaurants and their development schedules will be detailed in Exhibit A of the Development Agreement.
This means that as a Checkersrallys developer, you are guaranteed a minimum number of franchise opportunities within your designated Development Area, provided you comply with the Development Agreement and other related agreements. The exact number of franchises you will be granted is not a fixed number in the FDD itself but is instead determined by Exhibit A, which is specific to your agreement.
However, Checkersrallys retains the right to operate or franchise other Checkers or Rally's restaurants within the Development Area under certain conditions. These exceptions include franchises granted under the Development Agreement, restaurants already open or committed to opening as of the agreement date, restaurants at Non-Traditional Sites, and restaurants acquired from other franchise systems. This implies that while you are guaranteed a minimum number of franchises, you may still face competition from other Checkersrallys locations within your Development Area that fall under these exceptions.