What is the deadline for a Checkers franchisee to submit a site for approval after the Effective Date?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Selection of Premises. If you have suggested a location for the Franchised Restaurant which we have approved before or concurrently with the execution of this Agreement, the Premises will be set forth on Exhibit B. If we and you have not agreed upon an approved location for the Franchised Restaurant before signing this Agreement, then you are responsible for selecting the site for the Franchised Restaurant within the geographic area described in Exhibit B ("Designated Area"). The Designated Area is delineated for the sole purpose of site selection and does not confer any territorial exclusivity or protection. You agree to obtain our written approval of the Franchised Restaurant's proposed site before signing any lease, sublease, or other document for the site. Within one hundred eighty (180) days after the Effective Date, you must locate and submit for our approval a site acceptable to us within the Designated Area for the Franchised Restaurant. We will use reasonable efforts to help analyze your market area, to help determine site feasibility, and to assist in designating the location, although we will not conduct site selection activities for you. We will not unreasonably withhold our approval of a site that meets our criteria for demographic characteristics; traffic patterns; parking; character of neighborhood; competition from, proximity to, and nature of other businesses; other commercial characteristics; and the proposed site's size, appearance, and other physical characteristics.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, a prospective franchisee has a limited time frame to identify and propose a suitable site for their restaurant. Specifically, the FDD states that within 180 days after the Effective Date of the Franchise Agreement, the franchisee must locate and submit a site for approval to Checkers. The 'Effective Date' is defined as the date the Franchise Agreement is signed by Checkers.
This requirement places a significant responsibility on the franchisee to act quickly after signing the agreement. Failing to identify and submit a site within this timeframe could potentially lead to delays in opening the restaurant or even a breach of the agreement. Checkers does offer assistance in analyzing the market area and determining site feasibility, but the ultimate responsibility for site selection rests with the franchisee.
Checkers also outlines that they will not unreasonably withhold approval of a site that meets their criteria. These criteria include demographic characteristics, traffic patterns, parking availability, the character of the neighborhood, competition from other businesses, and the physical characteristics of the proposed site. This suggests that while the franchisee is responsible for finding the site, Checkers has specific standards that the site must meet to be approved.
Prospective franchisees should carefully consider the implications of this 180-day deadline and ensure they have a plan in place to identify and evaluate potential sites promptly. They should also familiarize themselves with Checkers' site selection criteria to increase the likelihood of their proposed site being approved.