For Checkersrallys restaurants in suburban or rural areas, what is the radius of the Protected Area?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
within a particular geographic area (the "Protected Area"). The Protected Area, as defined by us, shall be the lesser of: (i) a one (1) mile radius from the center of the Premises if your Franchised Restaurant is located in a suburban or rural area or (ii) an area immediately surrounding the Premises that encompasses a population of twenty thousand (20,000) residents if your Franchised Restaurant is located in an urban area. Notwithstanding the foregoing, we may, from time to time during the Term, at our sole option and upon providing notice to you, reduce or otherwise modify the size and/or boundaries of the Protected Area to encompass a geographic area immediately surrounding the Premises consisting of thirty thousand (30,000) residents. If at any time during the Term the population in the Protected Area becomes less than thirty thousand (30,000) residents, we have no obligation to expand or modify the size and/or boundaries of the Protected Area to include a greater population. You and we agree that upon any modification to the size and/or boundaries of the Protected Area pursuant to this Section, we are authorized to amend this Agreement to reflect such modification. You and we hereby agree that upon the amendment of this Agreement by us in accordance with this Section, the particular geographic area identified thereon shall be deemed the Protected Area under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the Protected Area for a franchised restaurant in a suburban or rural area is defined as the lesser of a one-mile radius from the center of the restaurant's premises. However, Checkersrallys may modify the size and/or boundaries of the Protected Area.
This means that if you open a Checkersrallys franchise in a suburban or rural location, you will typically have a one-mile radius around your restaurant where Checkersrallys will not open another location. This protected area gives you a degree of exclusivity and helps to prevent direct competition from other Checkersrallys restaurants, which can be crucial for building a customer base and achieving profitability.
However, Checkersrallys retains the right to modify this protected area, potentially reducing its size. This modification could occur if Checkersrallys decides to intensify its market presence or if demographic changes warrant a smaller protected area. It is important to note that Checkersrallys also reserves the right to operate or franchise restaurants at non-traditional sites, which may not be subject to the same protected area restrictions. As a franchisee, you would need to stay informed about any changes to your protected area and understand how Checkersrallys's broader development strategy might impact your business.