Does the Checkers Development Agreement state that the franchisee recognizes that the nature of Restaurants may change over time?
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 acknowledgment from the franchisee regarding the potential for change in the restaurant industry. Specifically, franchisees acknowledge that the nature of restaurants may evolve over time. This acknowledgment is part of a broader understanding that the restaurant industry is highly competitive and subject to constantly changing market conditions.
This acknowledgement indicates that franchisees should be prepared for potential shifts in the business model, menu offerings, or operational strategies of Checkers restaurants. It also highlights the importance of adaptability and a willingness to embrace change to remain competitive.
Furthermore, the agreement emphasizes that success in the Checkers franchise venture is largely dependent on the franchisee's own business abilities, efforts, and financial resources. This underscores the need for franchisees to be proactive in managing their business and responding to market changes. The franchisee also confirms that they have conducted their own independent investigation and are not relying on any guarantees or assurances from Checkers regarding revenues, profits, or the success of the business.