What acknowledgement does Checkers require from the franchisee regarding their understanding of the franchise agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchise "Checkers" and "Rally's"-branded restaurants, which feature a limited menu of hamburgers, cheeseburgers, hot dogs and/or such other menu items as we may authorize at any time and from time to time. We have developed and own a comprehensive System (defined below in Section 1.04) for developing and operating Restaurants.
- 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 franchise agreement. Specifically, the franchisee acknowledges that they have received and read the Franchise Disclosure Document and the franchise agreement itself, with all blanks completed, within the time periods required by applicable law. This acknowledgement confirms that Checkers has provided the franchisee with the necessary information to make an informed decision.
Furthermore, the franchisee acknowledges that they understand the terms of the agreement and accept them as reasonably necessary to maintain Checkers' high-quality standards across all restaurants. This includes protecting the goodwill of the brand's trademarks and the integrity of the Checkers system. This acknowledgement highlights the importance of uniformity and consistency in the franchise system.
Additionally, the franchisee acknowledges conducting an independent investigation of the business opportunity and recognizes the competitive nature and changing market conditions of the restaurant industry. They also recognize that investing in a Checkers restaurant involves business risks and that their success depends largely on their own abilities, efforts, and financial resources. This acknowledgement underscores that Checkers does not guarantee the franchisee's success and that the franchisee is responsible for their own due diligence and business performance. The franchisee also confirms that they have not relied on any guarantees or assurances from Checkers regarding revenues, profits, or the success of the business venture, nor have they relied on any promises that a parent company or affiliate will provide financial backing or guarantee Checkers' performance.