What does the release provided by the franchisee to Checkers cover regarding site selection?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of our acceptance of the Premises, you and your Owners release us, and our Affiliates, officers, directors, employees and agents from any and all loss, damage and liability arising from or in connection with the selection and/or acceptance of the Premises for development as a Restaurant.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the franchisee provides a release to Checkers regarding the selection and acceptance of the premises for development as a restaurant. Specifically, in consideration of Checkers' acceptance of the premises, the franchisee and their owners release Checkers, its affiliates, officers, directors, employees, and agents from any loss, damage, and liability. This release applies to issues arising from or connected with the selection and/or acceptance of the premises for development as a Checkers restaurant.
This means that if Checkers suggests, approves, or provides information about a site, it isn't a representation or warranty of the site's suitability. Checkers doesn't claim special expertise in site selection and only indicates that the site meets their acceptable criteria at the time. The potential of a site can change due to factors beyond Checkers' control, and they are not responsible if the site fails to meet the franchisee's expectations.
Therefore, Checkers emphasizes that the franchisee's acceptance of the franchise is based on their own independent investigation of the site's suitability. This disclaimer protects Checkers from liability if a selected site does not perform as expected. It is a common practice in franchising for franchisors to provide site selection assistance but to disclaim any guarantees of success, placing the ultimate responsibility for site evaluation on the franchisee.
Prospective Checkers franchisees should conduct thorough due diligence on any potential site, including market research, demographic analysis, and financial projections, before signing any agreements. Understanding this release is crucial, as it highlights that the franchisee bears the risk associated with site selection and the potential success of the restaurant at that location.