Does Checkersrallys have an obligation to convert acquired businesses to Checkersrallys-branded restaurants?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
deem appropriate and wherever such restaurants are located; (e) to acquire the assets or ownership interests of one or more businesses providing products and services similar or dissimilar to those provided at "Checkers" and "Rally's"-branded restaurants, and to franchise, license or create similar arrangements with respect to these businesses once acquired, and which businesses we may (at our sole discretion, and without obligation) convert, or allow to be converted, to operations as "Checkers" or "Rally's"-branded restaurants using any of the Marks and/or the System, wherever these businesses (or the franchisees or licensees of these businesses) are located or operating (including in the Protected Area, if applicable); and (f) to be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction), by a business providing products and services similar to those provided at "Checkers" or "Rally's"-branded restaurants, or by another business, even if such business operates, franchises and/or licenses Competitive Businesses in the Protected Area.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, Checkersrallys has the right to acquire other businesses that offer similar or different products and services as Checkersrallys restaurants. After acquiring these businesses, Checkersrallys has the option, but not the obligation, to convert them into Checkersrallys-branded restaurants. This decision is at Checkersrallys's sole discretion.
This means that Checkersrallys franchisees should not expect that Checkersrallys will automatically convert acquired businesses into Checkersrallys restaurants. Checkersrallys retains the flexibility to operate these acquired businesses under their existing brands or to convert them to Checkersrallys, depending on what Checkersrallys deems best for its overall business strategy.
For a prospective franchisee, this indicates that Checkersrallys maintains control over brand expansion and strategy, and franchisees have no right to influence decisions regarding acquired businesses. Franchisees should focus on operating their own restaurants successfully, as Checkersrallys's decisions regarding acquisitions and conversions will not be subject to franchisee input or approval.