If a Checkers franchisee enters into a Development Agreement, where must they select sites?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If you enter into a Development Agreement with us, you must select sites within your specified Development Area and we will approve them in accordance with our then current criteria for selection of a Checkers Restaurant or Rally's Restaurant site.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if a franchisee enters into a Development Agreement, they are required to select sites within their specified Development Area. These sites are then subject to approval by Checkers, based on their then-current criteria for site selection.
This means that the franchisee's ability to choose locations is limited to the geographic area outlined in the Development Agreement. Checkers retains the right to approve or disapprove any proposed site within that area. The approval process ensures that new locations meet Checkers' standards for factors like demographics, traffic patterns, and competition.
For a prospective franchisee, this highlights the importance of carefully considering the Development Area before signing the agreement. The franchisee should research the area's potential and ensure it aligns with their investment goals, as their site selection will be restricted to that specific region. Furthermore, understanding Checkers' site selection criteria is crucial for identifying and proposing locations that are likely to be approved.