What is the franchisee's obligation regarding obtaining Checkers' written approval of the proposed site?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to obtain our written approval of the Franchised Restaurant's proposed site before signing any lease, sublease, or other document for the site. Within one hundred eighty (180) days after the Effective Date, you must locate and submit for our approval a site acceptable to us within the Designated Area for the Franchised Restaurant. We will use reasonable efforts to help analyze your market area, to help determine site feasibility, and to assist in designating the location, although we will not conduct site selection activities for you. We will not unreasonably withhold our approval of a site that meets our criteria for demographic characteristics; traffic patterns; parking; character of neighborhood; competition from, proximity to, and nature of other businesses; other commercial characteristics; and the proposed site's size, appearance, and other physical characteristics.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, a franchisee must obtain written approval from Checkers for the proposed restaurant site before signing any lease, sublease, or other document for the site. The franchisee is responsible for selecting a site within the designated geographic area outlined in Exhibit B of the Franchise Agreement. This designated area is specifically for site selection and does not provide any territorial exclusivity or protection.
Within 180 days of the effective date of the agreement, the franchisee must identify and submit a site for approval. Checkers will offer reasonable assistance in analyzing the market area and determining site feasibility but will not conduct site selection activities for the franchisee. Checkers will not unreasonably withhold approval of a site that meets its criteria for demographic characteristics, traffic patterns, parking, neighborhood character, competition, proximity to other businesses, and the site's physical characteristics.
This requirement ensures that the location aligns with Checkers' standards and has the potential to succeed. However, the FDD also states that Checkers' approval or suggestions regarding a site do not constitute a representation or warranty of the site's suitability or the restaurant's potential profitability. The franchisee ultimately acknowledges that Checkers' criteria may not accurately reflect the potential of all sites, and Checkers is not responsible if a site fails to meet the franchisee's expectations.