What is a Checkers franchisee required to understand about the terms of the Franchise 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.
- 1.03 Your Representations. You and your Owners, if applicable, represent and warrant to us that: (a) neither you nor any of your Owners have made any untrue statement of any material fact or have omitted to state any material fact in obtaining the rights granted hereunder; (b) neither you nor any of your Owners have any direct or indirect legal or beneficial interest in any business that may be deemed a Competitive Business, except as otherwise fully and accurately disclosed in your franchise application submitted to us; and (c) the execution and performance of this Agreement will not violate any other agreement to which you or any of your Owners may be bound. You recognize that we have approved your franchise application in reliance on all of the statements you and your Owners have made in connection therewith.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, a franchisee must acknowledge several key aspects of the Franchise Agreement. The franchisee confirms they have thoroughly read the agreement and the Franchise Disclosure Document, understanding and accepting the terms as reasonably necessary to maintain Checkers' high-quality standards and protect the brand's goodwill. This acknowledgment signifies the franchisee's understanding of their obligations and the rationale behind them.
Furthermore, the franchisee recognizes the highly competitive nature of the restaurant industry, with its constantly changing market conditions. They acknowledge that the restaurant business may evolve over time and that investing in a Checkers restaurant involves inherent business risks. The franchisee understands that their success is largely dependent on their own business abilities, efforts, and financial resources. This demonstrates an understanding that Checkers is not guaranteeing success, and the franchisee's performance is crucial.
The franchisee also confirms they have not received or relied upon any guarantees or assurances regarding revenues, profits, or the success of the business venture. They acknowledge that no promises have been made regarding financial backing or guaranteed performance from any parent company or affiliate. Additionally, the franchisee represents and warrants that they have not made any untrue statements or omitted any material facts in obtaining the franchise rights and that they do not have any undisclosed interest in a competitive business. The franchisee also confirms that entering into the Franchise Agreement does not violate any other agreements they may be bound by. These representations are critical, as Checkers relies on the franchisee's statements when approving the franchise application.