Does Checkers provide any guarantees or assurances as to the revenues, profits, or success of the business venture?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
You have read this Agreement and our Franchise Disclosure Document. You understand the terms of this Agreement and accept them as being reasonably necessary to maintain the uniformity of our high quality standards at all Restaurants in order to protect the goodwill of the Marks and the integrity of the System. You have conducted an independent investigation of the business contemplated by this Agreement and recognize that the restaurant industry is highly competitive, with constantly changing market conditions. You recognize that the nature of Restaurants may change over time, that an investment in a Restaurant involves business risks and that the success of the venture is largely dependent on your own business abilities, efforts and financial resources. You have not received or relied on: (a) any guaranty or assurance, express or implied, as to the revenues, profits or success of the business venture contemplated by this Agreement; or (b) any promises that any parent company or Affiliate will back us up financially or otherwise guarantee our performance.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, prospective franchisees acknowledge that they have not received any guarantees or assurances regarding the potential revenues, profits, or overall success of the business venture. This is a standard disclaimer in franchise agreements.
Checkers emphasizes that the restaurant industry is highly competitive and subject to constantly changing market conditions. The success of a Checkers franchise is largely dependent on the franchisee's own business abilities, efforts, and financial resources. This highlights the importance of a franchisee's active involvement and competence in managing the business.
This acknowledgment underscores the inherent risks associated with investing in a Checkers restaurant. Prospective franchisees should conduct thorough due diligence, including market research and financial planning, to assess the viability of the franchise opportunity. They should not rely on any implied guarantees of success, as the ultimate performance of the restaurant will depend on their own capabilities and local market conditions.