Does the Checkersrallys Development Agreement include any guarantees or assurances as to the revenues, profits, or success of the business?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
You have read this Agreement and our Franchise Disclosure Document. You understand the terms of this Agreement and accept them as being reasonably necessary to maintain the uniformity of our high quality standards at all Restaurants in order to protect and preserve the goodwill of the Marks and the integrity of the System. You have conducted an independent investigation of the business contemplated by this Agreement and recognize that the restaurant industry is highly competitive, with constantly changing market conditions. You recognize that the nature of Restaurants may change over time, that an investment in Restaurants involves business risks and that the success of the venture is largely dependent on your own business abilities, efforts and financial resources. You have not received or relied on: (a) any guaranty or assurance, express or implied, as to the revenues, profits or success of the business venture contemplated by this Agreement; or (b) any promises that any parent company or Affiliate will back us up financially or otherwise guarantee our performance.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees acknowledge that they have not received or relied on any guarantees or assurances regarding the revenues, profits, or success of the business venture. The FDD emphasizes that the restaurant industry is highly competitive and subject to constantly changing market conditions.
Checkersrallys stresses that the nature of restaurants may evolve over time and that investing in a restaurant involves inherent business risks. The success of the venture is largely dependent on the franchisee's own business abilities, efforts, and financial resources. This statement underscores the importance of conducting thorough due diligence and understanding the risks involved before investing in a Checkersrallys franchise.
This disclosure is a standard practice in franchising, intended to manage expectations and ensure that franchisees understand they are responsible for their business's performance. Prospective Checkersrallys franchisees should carefully consider their own capabilities and resources, and conduct independent research to assess the potential for success in their chosen market.