What is the geographic area within which the franchisee must select a site for the Checkers Franchised Restaurant?
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.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, if a location for the franchised restaurant has not been approved before the franchise agreement is signed, the franchisee is responsible for selecting a site within the geographic area described in Exhibit B, referred to as the "Designated Area." This Designated Area is specifically for site selection and does not grant any territorial exclusivity or protection to the franchisee.
The Checkers franchisee must obtain written approval from Checkers for the proposed site before signing any lease or sublease. The franchisee has 180 days from the effective date of the agreement to locate and submit a site within the Designated Area for approval. Checkers will offer reasonable assistance in analyzing the market area and determining site feasibility but will not conduct site selection activities directly for the franchisee.
Checkers will not unreasonably withhold approval of a site that meets its criteria, which include demographic characteristics, traffic patterns, parking, neighborhood character, competition, proximity to other businesses, and the site's physical characteristics. If the franchisee cannot find an acceptable site within the Designated Area within the given timeframe, they may request an extension, which Checkers may grant at its sole discretion. Granting an extension requires the franchisee to pay a nonrefundable fee of $5,000.