What are the specific requirements for site selection for a Checkers franchise, considering both Item 9 and Exhibit B of the Franchise Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| OBLIGATION | SECTION IN AGREEMENT | DISCLOSURE DOCUMENT ITEM | |---|---|---| | a. Site selection and acquisition/lease | Sections 3.01, 3.02, 3.03, and Exhibit B of the Franchise Agreement; and Sections 3.01 and 3.02 and Exhibit A of the Development Agreement | Items 7, 8 and 11 | Selection of Premises. If you have suggested a location for the Franchised Restaurant which we have approved before or concurrently with the execution of this Agreement, the Premises will be set forth on Exhibit B. If we and you have not agreed upon an approved location for the Franchised Restaurant before signing this Agreement, then you are responsible for selecting the site for the Franchised Restaurant within the geographic area described in Exhibit B ("Designated Area"). The Designated Area is delineated for the sole purpose of site selection and does not confer any territorial exclusivity or protection. You agree to obtain our written approval of the Franchised Restaurant's proposed site before signing any lease, sublease, or other document for the site. Within one hundred eighty (180) days after the Effective Date, you must locate and submit for our approval a site acceptable to us within the Designated Area for the Franchised Restaurant. We will use reasonable efforts to help analyze your market area, to help determine site feasibility, and to assist in designating the location, although we will not conduct site selection activities for you. We will not unreasonably withhold our approval of a site that meets our criteria for demographic characteristics; traffic patterns; parking; character of neighborhood; competition from, proximity to, and nature of other businesses; other commercial characteristics; and the proposed site's size, appearance, and other physical characteristics.
In consideration of our acceptance of the Premises, you and your Owners release us, and our Affiliates, officers, directors, employees and agents from any and all loss, damage and liability arising from or in connection with the selection and/or acceptance of the Premises for development as a Restaurant.
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, franchisees are responsible for site selection, and Checkers provides guidance during the process. Item 9 references Sections 3.01, 3.02, 3.03, and Exhibit B of the Franchise Agreement, outlining the franchisee's obligations for site selection and acquisition or lease. If a location isn't agreed upon before signing the Franchise Agreement, the franchisee must find a suitable site within a designated area. This designated area is specifically for site selection and doesn't provide any territorial exclusivity. The selected site is subject to Checkers' approval.
Checkers will offer reasonable assistance in analyzing the market area and determining site feasibility, but the franchisee is responsible for the actual site selection activities. Checkers' site selection criteria include demographic characteristics, traffic patterns, parking availability, the character of the neighborhood, competition from other businesses, proximity to other businesses, the size and appearance of the site, and other physical and commercial characteristics. The franchisee must submit a site for approval within 180 days of the Franchise Agreement's effective date. The location of the premises, if approved before the agreement, will be detailed in Exhibit B of the Franchise Agreement.
Checkers retains the right to approve or reject the site based on their criteria. The franchisee must obtain written approval from Checkers before signing any lease or purchase agreement for the site. Furthermore, franchisees release Checkers from any liability related to the selection and acceptance of the premises. This indicates that while Checkers offers guidance and criteria, the final responsibility for site selection and any associated risks rests with the franchisee.
Prospective franchisees should carefully review Section 3 of the Franchise Agreement and Exhibit B to fully understand their obligations and Checkers' approval process. It is important to note that Checkers will not unreasonably withhold approval of a site that meets their established criteria. Franchisees should also consider the potential costs and risks associated with site selection, as they bear the responsibility for these aspects of the business.