Does the Checkers Development Agreement state that an investment in Restaurants involves business risks?
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 that investing in Checkers restaurants involves business risks. Specifically, the agreement states that the prospective franchisee recognizes that the restaurant industry is highly competitive and subject to constantly changing market conditions.
Furthermore, the Development Agreement emphasizes that the success of the Checkers venture is largely dependent on the franchisee's own business abilities, efforts, and financial resources. This highlights the importance of a franchisee's active involvement and competence in managing the business. Checkers does not provide any guarantees or assurances regarding the potential revenues, profits, or overall success of the business venture.
This acknowledgement serves to inform potential franchisees of the inherent risks associated with investing in a Checkers franchise and to ensure that they have conducted their own independent investigation before entering into the agreement. It also protects Checkers from potential claims that franchisees were misled about the risks involved.