Under what circumstances will a Checkersrallys franchisee receive a limited protected area?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands we control. However, you may receive a limited protected area, as follows: we will not operate (directly or through an affiliate), or grant to a third party the right to operate, any Checkers Restaurant or Rally's Restaurant located within the particular geographic area identified in Exhibit B attached to the Franchise Agreement (the "Protected Area"). The Protected Area, as defined by us, will 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 20,000 residents if your Franchised Restaurant is located in an urban area. We do not provide a Protected Area to franchisees that operate Restaurants from Non-Traditional Sites.
Source: Item 12 — TERRITORY (FDD pages 57–60)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee may receive a limited protected area under specific conditions. Checkersrallys does not grant exclusive territories. However, Checkersrallys will not operate or grant to a third party the right to operate a Checkers Restaurant or a Rally's Restaurant within a defined "Protected Area."
The size of the Protected Area depends on the restaurant's location. For restaurants in suburban or rural areas, the Protected Area extends one mile in radius from the center of the premises. In urban areas, the Protected Area is defined as the area immediately surrounding the premises that encompasses a population of 20,000 residents. Checkersrallys does not provide a Protected Area to franchisees operating Restaurants from Non-Traditional Sites.
Checkersrallys retains the right to modify the Protected Area during the term of the Franchise Agreement. They may reduce the size or change the boundaries to encompass a geographic area immediately surrounding the premises consisting of a population of 20,000 residents. If the population within the Protected Area drops below 20,000, Checkersrallys is not obligated to expand or modify the area to include a greater population. Any modifications to the Protected Area will be reflected in an amendment to Exhibit B of the Franchise Agreement.