Does Checkersrallys reserve the right to operate restaurants identified by trademarks other than the Checkersrallys name and mark?
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 retains specific rights regarding the operation of restaurants under different trademarks. Checkersrallys reserves the right to establish and operate restaurants identified by trademarks, service marks, or trade dress other than the Checkersrallys name and mark. These restaurants can be operated under terms and conditions that Checkersrallys deems appropriate, regardless of their location.
This reservation of rights allows Checkersrallys to diversify its brand portfolio and explore different market segments without being restricted to only the Checkersrallys brand. For a franchisee, this means that Checkersrallys could introduce new restaurant concepts that might compete with their existing Checkersrallys franchise, although these would operate under different branding.
It is important for a prospective franchisee to understand that Checkersrallys's strategic decisions regarding new brands and trademarks are at their sole discretion. Franchisees have no right to prevent Checkersrallys from launching new concepts, even if they potentially draw customers away from existing Checkersrallys locations. This is a standard clause in many franchise agreements, allowing the franchisor flexibility to adapt to changing market conditions and consumer preferences.