Does the Checkers franchise agreement state that a parent company or affiliate will financially back up Checkers' performance?
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 or relied on any promises that a parent company or affiliate will provide financial backing or guarantee Checkers' performance. This means that Checkers franchisees cannot expect any financial support or guarantees from Checkers' parent company or affiliated entities. The success of the franchise is largely dependent on the franchisee's own business abilities, efforts, and financial resources.
This disclaimer is a standard practice in franchising. Franchisees are typically responsible for their own financial success and should not rely on external guarantees. This acknowledgment underscores the importance of conducting thorough due diligence and understanding the risks involved in investing in a Checkers franchise. Prospective franchisees should carefully evaluate their own financial capabilities and business acumen before entering into a franchise agreement.
The franchise agreement emphasizes that franchisees have conducted their own independent investigation of the business and are not relying on any assurances of revenue, profits, or success from Checkers. This reinforces the understanding that the restaurant industry is competitive and subject to changing market conditions. Franchisees must be prepared to adapt to these changes and manage their business effectively to achieve success.