Under what circumstances can Checkersrallys provide a franchisee's financial data to third parties outside of the Checkersrallys system?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to use the data we collect for any purpose, except that we shall not provide financial data to third parties, outside of our System or network of Restaurants, in such a form that readily identifies the Franchised Restaurant, unless we are required to do so by law, regulation, or order.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys has the right to use franchisee data for any purpose. However, Checkersrallys will not provide a franchisee's financial data to third parties outside of its own system or network of restaurants if that data readily identifies the specific franchised restaurant, unless required by law, regulation, or order.
This means that while Checkersrallys can collect and utilize a franchisee's financial data for internal purposes, such as analyzing performance and trends within the franchise system, they are restricted from sharing identifiable financial information with external parties. The exception to this rule is if a legal or regulatory authority compels Checkersrallys to disclose the data.
For a prospective Checkersrallys franchisee, this clause offers a degree of protection regarding the confidentiality of their restaurant's financial performance. Franchisees should be aware that Checkersrallys collects and uses their data, but the company is obligated to avoid sharing specific, identifiable financial data unless legally mandated. This is a fairly standard practice in franchising, as franchisors need to monitor performance but franchisees also have a reasonable expectation of privacy.