Is Checkers obligated to conduct site selection activities for the franchisee?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers does not conduct site selection activities for franchisees. The franchisee is responsible for selecting the site for the franchised restaurant within a designated geographic area. The franchisee must submit the proposed site for Checkers' written approval before signing any lease or sublease. This submission must occur within 180 days of the effective date of the franchise agreement.
While Checkers does not conduct site selection, they will provide some assistance. Checkers will use reasonable efforts to help analyze the franchisee's market area and determine site feasibility, as well as assist in designating the location. However, the final responsibility for site selection rests with the franchisee. Checkers will not unreasonably withhold approval of a site that meets their criteria for demographic characteristics, traffic patterns, parking, character of neighborhood, competition, proximity to other businesses, and the site's physical characteristics.
This arrangement means that prospective Checkers franchisees need to be prepared to conduct thorough market research and site evaluations themselves. They should also be prepared to negotiate leases and other agreements with landlords. While Checkers offers assistance, the franchisee bears the ultimate risk and responsibility for choosing a viable location. Franchisees should carefully consider these factors and seek professional advice when evaluating potential sites.