What acknowledgement does Checkers require from the franchisee regarding the competitive nature of the restaurant industry?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.02 Your Acknowledgments. You have read this Agreement and our Franchise Disclosure Document. You understand the terms of this Agreement and accept them as being reasonably necessary to maintain the uniformity of our high quality standards at all Restaurants in order to protect the goodwill of the Marks and the integrity of the System. You have conducted an independent investigation of the business contemplated by this Agreement and recognize that the restaurant industry is highly competitive, with constantly changing market conditions. You recognize that the nature of Restaurants may change over time, that an investment in a Restaurant involves business risks and that the success of the venture is largely dependent on your own business abilities, efforts and financial resources. You have not received or relied on: (a) any guaranty or assurance, express or implied, as to the revenues, profits or success of the business venture contemplated by this Agreement; or (b) any promises that any parent company or Affiliate will back us up financially or otherwise guarantee our performance.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, franchisees must acknowledge the highly competitive nature of the restaurant industry. Specifically, franchisees confirm they have conducted an independent investigation of the business and recognize that the restaurant industry is highly competitive with constantly changing market conditions. They also acknowledge that the nature of Checkers restaurants may evolve over time.
This acknowledgement is important because it confirms that franchisees understand the risks involved in investing in a Checkers franchise. The franchisee accepts that success depends largely on their own business abilities, efforts, and financial resources. This statement protects Checkers from future claims that the franchisee was not aware of the competitive landscape or the potential for business risks.
This type of acknowledgement is standard practice in the franchise industry. Franchisors want to ensure that franchisees are entering the business with realistic expectations and are prepared for the challenges of operating a restaurant. The franchisee also confirms they have not relied on any guarantees or assurances from Checkers regarding potential revenues, profits, or the success of the business venture.
By signing the franchise agreement, the franchisee confirms they understand that Checkers is not responsible for their success or failure. The franchisee bears the ultimate responsibility for making the business work. This acknowledgement underscores the importance of thorough due diligence and careful consideration before investing in a Checkers franchise.