Does the Checkers franchise agreement guarantee any revenue, profits, or success of the business venture?
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 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 a Restaurant 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 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, franchisees acknowledge that they have not received any guarantees or assurances regarding the revenues, profits, or success of the Checkers business venture. The FDD emphasizes that the restaurant industry is competitive and subject to changing market conditions.
Checkers makes it clear that the success of a Checkers restaurant is largely dependent on the franchisee's own business abilities, efforts, and financial resources. Prospective franchisees must recognize that investing in a Checkers restaurant involves business risks.
This disclaimer is standard practice in the franchise industry. Franchisors typically avoid making guarantees about financial performance because the success of a franchise depends heavily on the individual franchisee's management and local market conditions. This acknowledgement protects Checkers from potential legal claims based on unrealistic expectations.