What is the process Checkers uses to either accept or reject a proposed site for a Franchised Restaurant?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
You must select a site for your Franchised Restaurant that conforms to our standard site selection criteria and that we accept or reject pursuant to our standard franchise site package (see Item 11).
Purchase and Lease of Premises
We have the right to approve the terms of any lease, sublease or purchase contract for the Premises of your Franchised Restaurant. Any lease or sublease for the Premises must contain certain provisions detailed in our required form of franchise addendum to lease agreement (the "Lease Addendum"), the current form of which we include as an exhibit attached to the Franchise Agreement.
If we agree to sublease the Premises to you, you are required to pay the rent under the sublease to the landlord of the Premises, along with the related occupancy costs, which include property taxes, insurance, maintenance and structural repairs. We derive revenue from this subleasing arrangement, as detailed in Item 6.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, a franchisee must select a site for their restaurant that aligns with Checkers' standard site selection criteria. Checkers retains the right to either accept or reject the proposed site based on their standard franchise site package, as detailed further in Item 11 of the FDD.
Checkers also maintains the right to approve the terms of any lease, sublease, or purchase contract for the premises of the franchised restaurant. Any lease or sublease must include specific provisions outlined in Checkers' required form of franchise addendum to lease agreement, which is attached as an exhibit to the Franchise Agreement.
If Checkers agrees to sublease the premises to the franchisee, the franchisee is responsible for paying rent directly to the landlord, along with all related occupancy costs, including property taxes, insurance, maintenance, and structural repairs. Checkers derives revenue from this subleasing arrangement, as detailed in Item 6 of the FDD.