Does the Designated Area described in Exhibit B for Checkersrallys confer any territorial exclusivity or protection?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
endent investigation of the site's suitability for the Premises.
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.
3.02 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.
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.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the Designated Area described in Exhibit B does not confer any territorial exclusivity or protection. The Designated Area is primarily for site selection purposes.
The FDD states that if Checkersrallys and the franchisee have not agreed upon an approved location before signing the agreement, the franchisee is responsible for selecting a site within the Designated Area described in Exhibit B. The franchisee must get Checkersrallys's written approval of the proposed site before signing any lease.
Checkersrallys will use reasonable efforts to help analyze the market area and determine site feasibility, but the franchisee is ultimately responsible for site selection. The franchisee has 180 days from the effective date to find and submit a site within the Designated Area for approval. If the franchisee cannot locate a site within the prescribed time period, they may request an extension of time to locate an acceptable site within the Designated Area, which Checkersrallys may grant at its sole discretion, subject to a nonrefundable extension fee of $5,000.