What are the franchisee's responsibilities regarding site selection for a Checkers restaurant, as described in Section 3.01 of the Franchise Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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In consideration of our acceptance of the Premises, you and your Owners release us, and our Affiliates, officers, directors, employees and agents from any and all loss, damage and liability arising from or in connection with the selection and/or acceptance of the Premises for development as a Restaurant.
Selection of Premises. If you have suggested a location for the Franchised Restaurant which we have approved before or concurrently with the execution of this Agreement, the Premises will be set forth on Exhibit B. If we and you have not agreed upon an approved location for the Franchised Restaurant before signing this Agreement, then you are responsible for selecting the site for the Franchised Restaurant within the geographic area described in Exhibit B ("Designated Area"). The Designated Area is delineated for the sole purpose of site selection and does not confer any territorial exclusivity or protection. 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.
You agree to send us a description of the proposed site, including a summary of the items listed above, along with a letter of intent or other evidence confirming your favorable prospects for obtaining the proposed site. We will use reasonable efforts to approve or disapprove the proposed site within thirty (30) days after receiving your written proposal. If we do not approve of a proposed site, you must identify and notify us of new sites until we approve a site for the Franchised Restaurant. Upon our approval of a site, we will insert its address into Exhibit B, and it will be the Premises. The failure to insert such address into in Exhibit B shall not automatically affect the enforceability of this Agreement. If, after expending good faith best efforts (as we determine in our sole judgment), you are unable to locate a site acceptable to us within the Designated Area for the Franchised Restaurant within the prescribed time period under this Section, then you may request an extension of time to locate an acceptable site within the Designated Area, which we may grant to you in our sole discretion. If we grant you such an extension, you must pay us a nonrefundable extension fee of Five Thousand Dollars ($5,000) as a condition to our granting such extension.
3.03 Purchase or Lease of Premises. We have the right to approve the terms of any lease, sublease or purchase contract for the Premises. You agree to sign, and have the landlord sign, the franchise addendum to lease agreement attached hereto as Exhibit C, containing certain required terms and provisions of the lease or sublease.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, franchisees are primarily responsible for selecting the site for their franchised restaurant. If Checkers and the franchisee haven't agreed on a location before signing the agreement, the franchisee must find a site within the designated geographic area outlined in Exhibit B. The franchisee must then submit the proposed site to Checkers for written approval before signing any lease or agreement for the location. This site selection must occur within 180 days of the agreement's effective date. Checkers offers assistance in analyzing the market area and determining site feasibility but does not conduct site selection activities for the franchisee.
Checkers will not unreasonably withhold approval of a site that meets its criteria. These criteria include demographic characteristics, traffic patterns, parking availability, the character of the neighborhood, competition from other businesses, and the site's physical characteristics like size and appearance. However, Checkers's approval or suggestions regarding a site do not constitute a representation or warranty of the site's suitability for a restaurant or its potential profitability.
Section 3.01 emphasizes that the franchisee's acceptance of the franchise is based on their own independent investigation of the site's suitability. The franchisee acknowledges that Checkers does not claim special expertise in site selection and that the suitability of a site can be affected by factors beyond Checkers's control. The franchisee releases Checkers from any liability related to the selection or acceptance of the premises. This means that the franchisee bears the ultimate responsibility for ensuring the chosen location is viable for their Checkers restaurant.