What rights do Checkersrallys and its agents have regarding inspections of a Franchised Restaurant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
12. INSPECTIONS OF THE FRANCHISED RESTAURANT.
12.01 Inspections.We and our designated agents have the right at any reasonable time and without prior notice to: (a) inspect the Franchised Restaurant; (b) observe, photograph, audio-tape and/or video tape the operations of the Franchised Restaurant; (c) remove samples of any food and beverage products, materials or supplies for testing and analysis; and (d) interview personnel and customers of the Franchised Restaurant. You agree to cooperate fully with such activities. You acknowledge that any evaluation or inspection that we or our designated agents or representatives conduct is conducted in order to protect our interests in the System and the Marks and is not intended to exercise, and does not constitute, in whole or in part, control over the day-to-day operation of the Franchised Restaurant and you agree to never contend otherwise.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys and its designated agents have specific rights regarding the inspection of a franchised restaurant. These rights are designed to protect Checkersrallys's interests in its system and marks, without exerting control over the restaurant's daily operations.
Checkersrallys and its agents can inspect the franchised restaurant at any reasonable time and without prior notice. This includes the right to observe, photograph, audio-tape, and/or video tape the restaurant's operations. They can also remove samples of food and beverage products, materials, or supplies for testing and analysis. Additionally, Checkersrallys and its agents are permitted to interview personnel and customers at the franchised restaurant.
The franchisee is required to fully cooperate with these inspection activities. However, the document explicitly states that these evaluations and inspections are intended to protect Checkersrallys's interests in the system and marks, and do not constitute control over the day-to-day operations of the franchised restaurant. Franchisees agree not to argue otherwise.
These inspection rights are a standard practice in franchising, allowing the franchisor to ensure brand consistency and adherence to quality standards across all locations. For a prospective Checkersrallys franchisee, this means being prepared for unannounced inspections and cooperating fully to maintain a positive relationship with the franchisor and uphold the brand's reputation.