Does Checkersrallys have the right to establish and operate restaurants identified by trademarks other than the Checkers or Rally's name and mark?

According to Checkersrallys' 2025 Franchise Disclosure Document, Checkersrallys retains significant rights regarding the operation of restaurants under different trademarks. Specifically, Checkersrallys has the right to establish and operate restaurants, or grant others the right to do so, under trademarks, service marks, or trade dress that are different from the Checkers or Rally's name and mark. This includes the ability to set the terms and conditions for these restaurants as Checkersrallys deems appropriate, regardless of their location.

This broad right allows Checkersrallys to diversify its brand portfolio and potentially enter new market segments without being restricted to the Checkers or Rally's brands. For a franchisee, this means that Checkersrallys could introduce competing brands or concepts, although the document states that Checkersrallys does not currently intend to establish or franchise Checkers Restaurants in any Rally's franchisee's general market area, or Rally's Restaurants in any Checkers franchisee's general market area. The FDD also states that Checkersrallys intends to resolve any potential conflicts that may arise between a Checkers Restaurant and a Rally's Restaurant on a case-by-case basis.

Furthermore, Checkersrallys can sell products or services under different trademarks through alternative channels of distribution, such as the internet or supermarkets. This could impact a franchisee's sales if Checkersrallys introduces similar products under a different brand in the same market. The franchisee should be aware that Checkersrallys' decisions regarding other brands and distribution channels are at its sole discretion, without any obligation to compensate the franchisee. This clause highlights the importance of understanding the competitive landscape and potential market overlap when investing in a Checkersrallys franchise.