Is Checkers responsible if a suggested or approved site fails to meet a franchisee's expectations?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ective or bind us. We will use all reasonable efforts to make a site acceptance decision and, if the site is accepted, deliver a site acceptance letter to you, within 30 days after we acknowledge receipt of the complete site report and any other materials we have requested. In deciding whether to accept or reject a site you propose, we may consider such factors as we, in our sole discretion, deem appropriate, including the general location and neighborhood, demographic information, traffic patterns, access, visibility, location of other restaurants and food establishments (including other Restaurants) and size, condition, configuration, appearance and other physical characteristics of the site. You acknowledge and agree that, if we suggest, approve, or give you information regarding a site, our action is not a representation or warranty of any kind, express or implied, of the site's suitability for a Restaurant or any other purpose. We do not represent that we, or any of our Affiliates, owners, employees or agents, have special expertise in selecting sites. Our action indicates only that we believe that the site meets our then acceptable criteria and not that a Restaurant will be profitable or successful at the site.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers is not responsible if a suggested or approved site fails to meet a franchisee's expectations. Checkers does not offer any guarantee regarding the suitability of a site for a restaurant, even if Checkers suggests, approves, or provides information about the location. Checkers explicitly states that their actions do not constitute a representation or warranty of any kind about the site's potential.
Checkers also clarifies that neither they, nor their affiliates, owners, employees, or agents, claim to have special expertise in site selection. Their approval only indicates that the site meets their acceptable criteria at that time, not that the restaurant will be profitable or successful. The document acknowledges that the criteria Checkers uses, even if effective in the past, might not accurately predict the potential of all sites due to changing demographic or other factors.
This means that a prospective Checkers franchisee bears the ultimate responsibility for independently investigating and determining the suitability of a site for their restaurant. The franchisee acknowledges that their decision to develop and operate a restaurant at any site is based solely on their own assessment, not on any guarantee or representation from Checkers. This highlights the importance of thorough due diligence on the part of the franchisee, including market research, financial projections, and potentially consulting with independent experts, before committing to a specific location.