What happens if Checkers does not approve of a proposed site for a Checkers restaurant?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ill 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 ti
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if Checkers does not approve a proposed site for a franchised restaurant, the franchisee must continue to identify and notify Checkers of new potential sites until one is approved. Checkers commits to using reasonable efforts to either approve or disapprove a proposed site within thirty days of receiving the franchisee's written proposal. Once a site is approved, its address will be added to Exhibit B of the franchise agreement, officially designating it as the Premises.
If the franchisee, despite their best efforts (as determined solely by Checkers), cannot find a mutually acceptable site within the designated area within the initially prescribed timeframe, they can request an extension. Checkers may grant this extension at its sole discretion. However, securing this extension requires the franchisee to pay a nonrefundable fee of $5,000.
It is important to note that Checkers' approval of a site does not constitute a warranty of its suitability or potential profitability. The FDD emphasizes that the franchisee is responsible for conducting their own independent investigation to determine if the site meets their expectations and business needs. The franchisee also releases Checkers from any liability related to the site selection process.