According to the FDD, what does Checkers' site approval indicate?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ective or bind us. We will use all reasonable efforts to make a site acceptance decision and, if the site is accepted, deliver a site acceptance letter to you, within 30 days after we acknowledge receipt of the complete site report and any other materials we have requested. In deciding whether to accept or reject a site you propose, we may consider such factors as we, in our sole discretion, deem appropriate, including the general location and neighborhood, demographic information, traffic patterns, access, visibility, location of other restaurants and food establishments (including other Restaurants) and size, condition, configuration, appearance and other physical characteristics of the site. You acknowledge and agree that, if we suggest, approve, or give you information regarding a site, our action is not a representation or warranty of any kind, express or implied, of the site's suitability for a Restaurant or any other purpose. We do not represent that we, or any of our Affiliates, owners, employees or agents, have special expertise in selecting sites. Our action indicates only that we believe that the site meets our then acceptable criteria and not that a Restaurant will be profitable or successful at the site.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if Checkers suggests, approves, or provides information about a site, it does not constitute a representation or warranty regarding the site's suitability for a restaurant or any other purpose. Checkers does not claim to have special expertise in site selection. Their approval only indicates that they believe the site meets their acceptable criteria at that time.
Checkers emphasizes that their criteria may not accurately reflect the potential of all sites, and demographic or other factors could change, affecting a site's potential. The uncertainty of these criteria is beyond Checkers' control, and they are not responsible if a site they suggest or approve fails to meet the franchisee's expectations.
Therefore, the FDD makes it clear that the franchisee's decision to develop and operate a Checkers restaurant at any site should be based solely on their own independent investigation of the site's suitability. This means that while Checkers provides site selection assistance and criteria, the ultimate responsibility for assessing the site's viability and potential profitability rests with the franchisee. This is a common practice in franchising, where franchisees are expected to conduct their own due diligence to ensure the location aligns with their business goals.