Is Checkers responsible if a suggested or approved site for a Checkers Restaurant fails to meet the franchisee's expectations?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
e Marks or the System. You waive, to the fullest extent permitted under applicable law, all claims, demands, or causes of action arising from or relating to any of the foregoing activities by us or any of our Affiliates in connection with our reserved rights under this Section 2.03.
3. DEVELOPMENT OF THE FRANCHISED RESTAURANT.
3.01 Site Acceptance Disclaimer. You acknowledge and agree that, if we suggest, approve, or give you information regarding a site for the Premises, 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 the Franchised Restaurant will be profitable or successful at the Premises. Applying criteria that have appeared effective with other sites and premises might not accurately reflect the potential for all sites and premises, and demographic and/or other factors included in or excluded from our criteria could change, altering the potential of a site and premises. The uncertainty and instability of these criteria are beyond our control, and we are not responsible if a site and premises we suggest or approve for the location of a Restaurant fails to meet your expectations. Accordingly, you acknowledge and agree that your acceptance of the franchise for a Restaurant pursuant to this Agreement is based on your own independent investigation of the site's suitability for the Premises.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
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. The FDD states that any suggestion, approval, or information provided by Checkers regarding a site should not be interpreted as a representation or warranty of the site's suitability for a restaurant or any other purpose. Checkers explicitly states they do not have special expertise in site selection. Their approval only indicates that the site meets their acceptable criteria at that time, not a guarantee of profitability or success.
Checkers emphasizes that the effectiveness of site selection criteria can change, and factors included or excluded from their criteria might not accurately reflect a site's potential. These uncertainties are beyond Checkers' control. Therefore, Checkers will not be held liable if a suggested or approved site does not meet the franchisee's expectations.
The FDD highlights that franchisees must conduct their own independent investigation of a site's suitability before accepting the franchise. By accepting the premises, the franchisee releases Checkers from any loss, damage, or liability related to the site's selection and acceptance. This underscores the importance of due diligence on the franchisee's part when evaluating potential locations for a Checkers restaurant.