Does Checkers have control over the uncertainty and instability of site selection criteria?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
e Marks or the System. You waive, to the fullest extent permitted under applicable law, all claims, demands, or causes of action arising from or relating to any of the foregoing activities by us or any of our Affiliates in connection with our reserved rights under this Section 2.03.
3. DEVELOPMENT OF THE FRANCHISED RESTAURANT.
3.01 Site Acceptance Disclaimer. You acknowledge and agree that, if we suggest, approve, or give you information regarding a site for the Premises, 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 the Franchised Restaurant will be profitable or successful at the Premises. Applying criteria that have appeared effective with other sites and premises might not accurately reflect the potential for all sites and premises, and demographic and/or other factors included in or excluded from our criteria could change, altering the potential of a site and premises. The uncertainty and instability of these criteria are beyond our control, and we are not responsible if a site and premises we suggest or approve for the location of a Restaurant fails to meet your expectations. Accordingly, you acknowledge and agree that your acceptance of the franchise for a Restaurant pursuant to this Agreement is based on your own independent investigation of the site's suitability for the Premises.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, Checkers acknowledges that the uncertainty and instability of site selection criteria are beyond their control. Checkers does not guarantee the suitability of a suggested or approved site for a restaurant or any other purpose. The brand indicates only that the site meets their then-acceptable criteria, not that the franchised restaurant will be profitable or successful at the premises.
The FDD states that criteria that have appeared effective with other sites and premises might not accurately reflect the potential for all sites and premises. Demographic and other factors included in or excluded from their criteria could change, altering the potential of a site and premises. The franchisee acknowledges that their acceptance of the franchise is based on their own independent investigation of the site's suitability for the premises.
In consideration of Checkers's acceptance of the premises, the franchisee releases Checkers and its affiliates from any loss, damage, and liability arising from or in connection with the selection and/or acceptance of the premises for development as a restaurant. This means that franchisees bear the ultimate responsibility for ensuring the site they choose is viable, even if Checkers initially approved it. This is a common practice in franchising, as local market conditions can significantly impact a restaurant's success, and franchisees are typically in the best position to assess these conditions.