Does the Checkersrallys Development Agreement state that an investment in Restaurants involves business risks?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.02 Your Acknowledgments. 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, the Development Agreement acknowledges that investing in restaurants involves business risks. The agreement stipulates that prospective franchisees understand the terms and conditions outlined in the agreement and the Franchise Disclosure Document.
Checkersrallys emphasizes that the restaurant industry is highly competitive and subject to constantly changing market conditions. Franchisees must recognize that the nature of the restaurant business can evolve over time, and success depends largely on their own business abilities, efforts, and financial resources.
Furthermore, Checkersrallys makes it clear that franchisees should not rely on any guarantees or assurances regarding revenues, profits, or the success of the business venture. Nor should they expect any financial backing or performance guarantees from Checkersrallys's parent company or affiliates. This underscores the importance of conducting thorough due diligence and understanding the risks involved before investing in a Checkersrallys franchise.