What is the designated area for the franchised Checkers restaurant, as defined in the franchise agreement?
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, the designated area is primarily for site selection and does not offer territorial exclusivity. If Checkers approves a location before or during the franchise agreement, the specific premises will be detailed in Exhibit B of the agreement. If a location hasn't been agreed upon, the franchisee is responsible for finding a site within a geographic area also described in Exhibit B, referred to as the "Designated Area".
This designated area is specifically for identifying a suitable location for the restaurant. Checkers must provide written approval of the proposed site before the franchisee signs any lease or agreement. The franchisee has 180 days from the agreement's effective date to find and submit a site for approval within the designated area. Checkers offers assistance in analyzing the market and determining site feasibility but does not conduct site selection for the franchisee.
Checkers states that it will not unreasonably withhold approval of a site that meets its criteria. These criteria include demographic characteristics, traffic patterns, parking availability, the character of the neighborhood, competition, proximity to other businesses, and the site's physical characteristics like size and appearance. This process ensures that the location aligns with Checkers' standards for a successful franchise operation, though it's important to remember that the designated area does not provide any exclusive rights or territorial protection.