What is the purpose of Checkers delineating a Designated Area?
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, alt
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the Designated Area serves a specific purpose related to site selection. If a franchisee suggests a location for the Franchised Restaurant, and Checkers approves it before or during the signing of the agreement, that location will be specified in Exhibit B. However, if an approved location hasn't been agreed upon by the time the agreement is signed, the franchisee is responsible for finding a site within the Designated Area outlined in Exhibit B.
The FDD clearly states that the Designated Area is solely for the purpose of site selection. This means that Checkers franchisees cannot interpret the designated area as providing any territorial exclusivity or protection against competition from other Checkers locations. The franchisee is responsible for obtaining Checkers' written approval of the proposed site before committing to any lease or sublease agreements.
Within 180 days of the agreement's effective date, the franchisee must identify and submit a site within the Designated Area that meets Checkers' approval. Checkers will offer reasonable assistance in analyzing the market area, assessing site feasibility, and helping to designate the location. This process ensures that the selected site aligns with Checkers' standards and market strategy, even though it doesn't guarantee any exclusive operating rights within that area.