Does the Checkers Development Agreement state that the franchisee accepts the terms as being reasonably necessary?
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's 2025 Franchise Disclosure Document, the franchisee acknowledges that they have read the agreement and the Franchise Disclosure Document. The franchisee also confirms that they understand the terms of the agreement and accept them as reasonably necessary. This acceptance is tied to maintaining the uniformity of Checkers' high-quality standards across all restaurants, which is intended to protect the goodwill associated with the brand's marks and the integrity of its system.
Furthermore, the franchisee's acknowledgment includes an understanding that the restaurant industry is highly competitive and subject to constantly changing market conditions. They recognize that investing in restaurants involves business risks and that their success largely depends on their own business abilities, efforts, and financial resources. This acknowledgment underscores that Checkers does not guarantee the franchisee's revenues, profits, or the success of the business venture.
This clause also states that the franchisee has not relied on any guarantees or assurances from Checkers regarding the financial performance of the franchise. Nor have they relied on promises that any parent company or affiliate will provide financial backing or guarantee Checkers' performance. This provision aims to ensure that franchisees enter the agreement with a clear understanding of the risks and responsibilities involved, based on their own independent investigation and assessment of the business opportunity.