What acknowledgement does Checkers require from the franchisee regarding the risks and dependencies of the restaurant business?
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 several key aspects of the restaurant business. Specifically, franchisees must confirm they have read the Franchise Agreement and FDD, understand its terms, and accept them as reasonably necessary to maintain uniformity and protect the brand's goodwill.
Furthermore, Checkers requires franchisees to acknowledge they have conducted an independent investigation of the business and recognize the restaurant industry's competitive nature and constantly changing market conditions. Franchisees must understand that investing in a Checkers restaurant involves business risks and that their success depends largely on their own abilities, efforts, and financial resources.
Finally, Checkers franchisees must acknowledge they have not received or relied on any guarantees or assurances regarding revenues, profits, or the success of the business, nor any promises that a parent company or affiliate will provide financial backing or guarantee Checkers' performance. This acknowledgement underscores that the franchisee bears the ultimate responsibility for the restaurant's performance and financial viability.