Does the Checkers Development Agreement state that the franchisee understands the terms of the agreement?
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, franchisees acknowledge that they have read the Development Agreement and the Franchise Disclosure Document. Franchisees also acknowledge that they understand the terms of the agreement and accept them as reasonably necessary to maintain the uniformity of Checkers' high-quality standards at all restaurants. This is in order to protect and preserve the goodwill of the marks and the integrity of the system.
Furthermore, the agreement states that franchisees have conducted an independent investigation of the business contemplated by the agreement. They recognize that the restaurant industry is highly competitive, with constantly changing market conditions. Franchisees also 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 their own business abilities, efforts, and financial resources.
Finally, the agreement states that franchisees have not received or relied on any guarantee or assurance, express or implied, as to the revenues, profits, or success of the business venture. Nor have they relied on any promises that any parent company or affiliate will back Checkers up financially or otherwise guarantee their performance. This acknowledgement is a standard clause in franchise agreements, intended to protect the franchisor from claims of misrepresentation or unrealistic promises.