What authorization must a Checkersrallys franchisee obtain to establish and operate a Restaurant within a Non-Traditional Site?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
You agree to send us a description of the proposed site, including a summary of the items listed above, along with a letter of intent or other evidence confirming your favorable prospects for obtaining the proposed site. We will use reasonable efforts to approve or disapprove the proposed site within thirty (30) days after receiving your written proposal. If we do not approve of a proposed site, you must identify and notify us of new sites until we approve a site for the Franchised Restaurant. Upon our approval of a site, we will insert its address into Exhibit B, and it will be the Premises. The failure to insert such address into in Exhibit B shall not automatically affect the enforceability of this Agreement. If, after expending good faith best efforts (as we determine in our sole judgment), you are unable to locate a site acceptable to us within the Designated Area for the Franchised Re
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee must obtain written approval from Checkersrallys for the proposed site of the franchised restaurant before signing any lease, sublease, or other document for the site. This approval process is detailed within the franchise agreement, emphasizing the franchisee's responsibility to select a site within a designated area that meets Checkersrallys's criteria.
The franchisee is required to submit a description of the proposed site, including a summary of relevant items and evidence confirming favorable prospects for obtaining the site. Checkersrallys will then use reasonable efforts to approve or disapprove the proposed site within 30 days of receiving the written proposal. If Checkersrallys does not approve a proposed site, the franchisee must continue to identify and notify Checkersrallys of new sites until one is approved. Upon approval, the site's address will be added to Exhibit B of the franchise agreement, officially designating it as the Premises.
If the franchisee, despite good faith efforts, cannot locate an acceptable site within the designated area within the prescribed time, they may request an extension. Granting an extension is at Checkersrallys's sole discretion, and it requires the franchisee to pay a nonrefundable extension fee of $5,000. This process underscores the importance of site selection in establishing a Checkersrallys franchise and the need for franchisee-franchisor collaboration to ensure the chosen location aligns with the brand's standards and business strategy.