Does the Checkers Development Agreement include an acknowledgement that the success of the venture is largely dependent on the franchisee's own abilities?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 and preserve 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 Restaurants 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 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the Development Agreement includes an acknowledgement that the success of the venture is largely dependent on the franchisee's own abilities. Specifically, the FDD states that the franchisee acknowledges they have conducted an independent investigation of the business and recognize the restaurant industry is highly competitive with constantly changing market conditions.
The FDD emphasizes that investing in restaurants involves business risks and that the success of the Checkers venture is largely dependent on the franchisee's own business abilities, efforts, and financial resources. This acknowledgement is part of the agreement to ensure franchisees understand the challenges and responsibilities involved in operating a Checkers franchise.
Furthermore, the FDD stipulates that franchisees have not received or relied upon any guarantees or assurances, express or implied, regarding the revenues, profits, or success of the business venture. Nor have they relied on any promises that a parent company or affiliate will provide financial backing or guarantee performance. This reinforces the understanding that the franchisee's own capabilities and resources are critical for the success of the Checkers franchise.