What is the franchisee's responsibility regarding the suitability of the site for the Checkers Premises?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
e Marks or the System. You waive, to the fullest extent permitted under applicable law, all claims, demands, or causes of action arising from or relating to any of the foregoing activities by us or any of our Affiliates in connection with our reserved rights under this Section 2.03.
3. DEVELOPMENT OF THE FRANCHISED RESTAURANT.
3.01 Site Acceptance Disclaimer. You acknowledge and agree that, if we suggest, approve, or give you information regarding a site for the Premises, our action is not a representation or warranty of any kind, express or implied, of the site's suitability for a Restaurant or any other purpose. We do not represent that we, or any of our Affiliates, owners, employees or agents, have special expertise in selecting sites. Our action indicates only that we believe that the site meets our then acceptable criteria and not that the Franchised Restaurant will be profitable or successful at the Premises. Applying criteria that have appeared effective with other sites and premises might not accurately reflect the potential for all sites and premises, and demographic and/or other factors included in or excluded from our criteria could change, altering the potential of a site and premises. The uncertainty and instability of these criteria are beyond our control, and we are not responsible if a site and premises we suggest or approve for the location of a Restaurant fails to meet your expectations. Accordingly, you acknowledge and agree that your acceptance of the franchise for a Restaurant pursuant to this Agreement is based on your own independent investigation of the site's suitability for the Premises.
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;
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the franchisee is ultimately responsible for independently investigating and determining the suitability of a proposed site for their Checkers restaurant. While Checkers may offer suggestions, approvals, or information regarding potential sites, this does not constitute a warranty or representation of the site's suitability or profitability. Checkers explicitly states that they do not possess special expertise in site selection and that their criteria may not accurately reflect the potential of all sites due to changing demographic or other factors.
Before signing any lease or agreement for a site, the franchisee must obtain written approval from Checkers for the proposed location. The franchisee is responsible for selecting a site within the designated geographic area and submitting it for approval within 180 days of the agreement's effective date. Checkers will offer reasonable efforts to assist in analyzing the market area and determining site feasibility but will not conduct site selection activities on behalf of the franchisee.
Checkers' approval of a site will not be unreasonably withheld if the site meets their criteria for demographic characteristics, traffic patterns, parking, neighborhood character, competition, proximity to other businesses, and the site's physical characteristics. However, the franchisee acknowledges that their acceptance of the franchise is based on their own investigation of the site's suitability. By proceeding with the franchise, the franchisee releases Checkers from any liability related to the selection or acceptance of the premises.
This arrangement is typical in the franchise industry, where franchisees bear the primary responsibility for site selection, as they are often more familiar with their local markets. However, franchisees should carefully consider Checkers' site selection criteria and utilize any assistance offered to make an informed decision, understanding that the ultimate success of the restaurant depends on the suitability of the chosen location.