What are the site selection obligations for a Checkers franchisee as described in Item 9?

According to Checkers' 2025 Franchise Disclosure Document, Item 9 outlines a franchisee's obligations, including site selection. Specifically, Sections 3.01, 3.02, 3.03, and Exhibit B of the Franchise Agreement, along with Sections 3.01 and 3.02 and Exhibit A of the Development Agreement, all relate to site selection and acquisition/lease, as referenced in Items 7, 8, and 11 of the FDD. This indicates that site selection is a crucial responsibility for Checkers franchisees, with detailed requirements and guidelines specified in the Franchise and Development Agreements.

The franchisee is responsible for finding a location that meets Checkers' standard site selection criteria, which the franchisor must then approve or reject. Item 11 further elaborates on site selection, stating that if a location isn't agreed upon before signing the Franchise Agreement, the franchisee must select a site within a designated geographic area. This site must be submitted for approval within 180 days of the Franchise Agreement date. Checkers will assess the proposed site based on criteria such as demographic characteristics, traffic patterns, parking, neighborhood character, competition, size, appearance, and other physical and commercial characteristics.

Checkers provides guidance in locating and developing the Franchised Restaurant as deemed appropriate. While Checkers will offer standard site selection criteria and on-site evaluations, they will not conduct site selection activities directly for the franchisee. For franchisees entering into a Development Agreement, site selection must occur within the specified Development Area, with approvals based on Checkers' then-current criteria. The FDD emphasizes that the franchisee bears the primary responsibility for identifying and proposing suitable sites that align with Checkers' requirements.

In summary, a prospective Checkers franchisee should carefully review Sections 3.01, 3.02, 3.03, and Exhibit B of the Franchise Agreement, as well as Sections 3.01 and 3.02 and Exhibit A of the Development Agreement, to fully understand their obligations regarding site selection. They should also be prepared to conduct thorough market research and site evaluations to identify locations that meet Checkers' criteria, keeping in mind the 180-day deadline for site approval after signing the Franchise Agreement.