factual

Does Checkersrallys provide a protected area to franchisees that operate restaurants from non-traditional sites?

Checkersrallys Franchise · 2025 FDD

Answer from 2025 FDD Document

We do not provide a Protected Area to franchisees that operate Restaurants from Non-Traditional Sites.

Source: Item 12 — TERRITORY (FDD pages 57–60)

What This Means (2025 FDD)

According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees operating restaurants from non-traditional sites do not receive a protected area. For standard Checkersrallys restaurants, the franchisor may grant a limited protected area. This protected area is defined as either a one-mile radius from the restaurant's center in suburban or rural areas, or an area encompassing 20,000 residents in urban areas, whichever is less.

This lack of a protected area for non-traditional sites means that Checkersrallys can establish other outlets, including those owned by the company or other franchisees, in the same vicinity as a non-traditional site. This could significantly increase competition for the franchisee. Non-traditional sites are often located in venues such as airports, malls, or travel plazas, where the customer base may be transient but also highly competitive.

Prospective franchisees considering non-traditional locations should carefully evaluate the potential for competition from other Checkersrallys outlets or other food service businesses. They should also assess the specific characteristics of the location, such as foot traffic, demographics, and the presence of other dining options, to determine the viability of the franchise without the protection of an exclusive territory.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.