What is the scope of the release provided by the franchisee to Checkers regarding site selection for a Checkers restaurant?

According to Checkers' 2025 Franchise Disclosure Document, franchisees release Checkers and its affiliates from liability relating to site selection. Specifically, in consideration for Checkers accepting the premises, the franchisee and their owners release Checkers, its affiliates, officers, directors, employees, and agents from any loss, damage, or liability connected to the selection or acceptance of the premises for development as a restaurant.

This release has significant implications for prospective franchisees. While Checkers may offer assistance in analyzing the market area and determining site feasibility, the franchisee ultimately bears the responsibility for selecting a suitable location. Checkers' approval of a site does not constitute a warranty of its suitability or potential profitability. The franchisee acknowledges that their acceptance of the franchise is based on their own independent investigation of the site.

This arrangement is fairly typical in the franchise industry, where franchisees are often responsible for site selection, though franchisors usually provide criteria and approval rights. The release underscores the importance of thorough due diligence on the part of the franchisee. It is crucial for prospective Checkers franchisees to conduct comprehensive market research, assess the site's demographics and traffic patterns, and carefully evaluate the potential for success before committing to a location. Franchisees should consider engaging independent consultants to assist with site evaluation to ensure they make informed decisions and mitigate potential risks.