On what basis should a Checkers franchisee make their decision to develop and operate a restaurant at any site?
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, the decision to develop and operate a Checkers restaurant at any site should be based solely on the franchisee's own independent investigation of the site's suitability. While Checkers may provide site selection assistance and standard criteria, their suggestions or approvals do not represent a warranty of the site's suitability or potential profitability.
Checkers explicitly states that they do not have special expertise in site selection and that criteria effective for other locations may not accurately reflect the potential of a new site. Factors such as demographic changes can alter a site's potential, and these uncertainties are beyond Checkers' control. Therefore, franchisees must conduct their own due diligence to determine if a site meets their expectations for a successful Checkers restaurant.
This approach places the responsibility and risk of site selection on the franchisee. It is crucial for prospective Checkers franchisees to conduct thorough market research, analyze traffic patterns, assess competition, and evaluate the physical characteristics of the site. Franchisees should not rely solely on Checkers' approval, as the ultimate success of the restaurant depends on the franchisee's independent assessment and business acumen.