Does Checkers require franchisees to accept the terms of the franchise agreement as reasonably necessary?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.02 Your Acknowledgments. 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, franchisees must acknowledge that they understand and accept the franchise agreement terms as reasonably necessary. This acceptance is tied to maintaining consistent, high-quality standards across all Checkers restaurants to protect the brand's goodwill and the integrity of its operating system.
This requirement means a prospective Checkers franchisee should carefully review and understand all aspects of the franchise agreement before signing. Franchisees are confirming that they believe the terms are reasonable for maintaining brand standards. This acknowledgment is a legal declaration that could impact future disputes or interpretations of the agreement.
Furthermore, the FDD emphasizes that franchisees have conducted their own independent investigation of the business and recognize the competitive nature of the restaurant industry. They also acknowledge that the success of the Checkers restaurant depends largely on their own business abilities, efforts, and financial resources. This reinforces that franchisees are entering the agreement with a clear understanding of the business and its inherent risks.