Under what circumstances is a Checkersrallys franchisee prohibited from recruiting or hiring an employee?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not recruit or hire any person who is a management level employee of ours or of any Restaurant operated by us, our Affiliates or another franchisee of ours without obtaining the employer's consent, which consent may be withheld for any reason or no reason.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee is restricted from recruiting or hiring certain individuals. Specifically, a Checkersrallys franchisee cannot recruit or hire any person who is a management-level employee of Checkersrallys itself, or any restaurant operated by Checkersrallys, its affiliates, or another Checkersrallys franchisee.
This prohibition is conditional, requiring the employer's consent before such recruitment or hiring can occur. This consent can be withheld for any reason or for no reason at all, giving Checkersrallys and its other franchisees significant control over their management-level employees' career moves within the franchise system.
This policy is designed to protect Checkersrallys and its franchisees from losing valuable management personnel to other parts of the system. It ensures a degree of stability and reduces the risk of internal competition for talent. For a prospective franchisee, this means they may face limitations in attracting experienced managers already working within the Checkersrallys network, potentially impacting their ability to quickly build a strong team.