Can Checkersrallys prescribe the maximum retail prices a franchisee may charge?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to abide by (i) the Payment Card Industry ("PCI") Data Security Standards enacted by the applicable Card Associations (as they may be modified at any time and from time to time or as successor standards are adopted); and (ii) all other security standards and guidelines that may be published at any time and from time to time by payment card companies and applicable to customer credit card and debit card information.
If you know or suspect a security breach, you must immediately notify us.
You will promptly identify and remediate the source of the compromise.
You assume all responsibility for providing all notices of breach or compromise and all duties to monitor credit histories and transaction concerning customers of your Franchised Restaurant.
- 9.11 Pricing. We reserve the right, to the fullest extent allowed by applicable law, to establish maximum, minimum, or other pricing requirements with respect to the prices you may charge for products and services.
These rights may include (without limitation) prescribing the maximum and/or minimum retail prices which you may charge customers for the products and/or services offered by your Franchised Restaurant; recommending retail prices; advertising specific retail prices for some or all products or services sold at your Franchised Restaurant; to engage in marketing, promotional and related campaigns which you must
participate in and which may directly or indirectly impact your retail prices; and, otherwise mandating, directly or indirectly, the maximum and/or minimum retail prices which your Franchised Restaurant may charge the public for the products and services it offers. We may engage in any such activity either periodically or throughout the Term. Further, we may engage in such activity only in certain geographic areas (cities, states, regions) and not others, or with regard to certain subsets of franchisees and not others. You acknowledge that the prices we prescribe or suggest may or may not optimize the revenues or profitability of your Franchised Restaurant and you irrevocably waive any and all claims arising from the establishment or suggestion of your Franchised Restaurant's retail prices.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys retains the right to set pricing requirements for products and services offered at franchised restaurants. Specifically, Checkersrallys can prescribe maximum and/or minimum retail prices for products and services. They can also recommend retail prices and advertise specific retail prices for some or all products.
This latitude allows Checkersrallys to engage in marketing, promotional, and related campaigns that franchisees must participate in. These campaigns may directly or indirectly impact a franchisee's retail prices. Checkersrallys may implement these pricing strategies either periodically or throughout the term of the franchise agreement. They can also choose to apply these strategies in specific geographic areas or to certain subsets of franchisees.
This level of control over pricing is not uncommon in franchising, particularly in the food service industry, where brand consistency and promotional offers are critical. However, the FDD stipulates that franchisees acknowledge that the prices Checkersrallys prescribes or suggests may not optimize the revenues or profitability of their franchised restaurant. By signing the franchise agreement, franchisees irrevocably waive any claims arising from the establishment or suggestion of retail prices by Checkersrallys.
Prospective franchisees should carefully consider the implications of this pricing control. While it ensures brand consistency and participation in marketing campaigns, it also means franchisees have limited autonomy in setting prices to respond to local market conditions or manage their profitability. It is important to evaluate whether Checkersrallys's pricing strategies align with the franchisee's business goals and local market dynamics.