Does the Checkersrallys franchise agreement guarantee any revenue, profits, or success of the business venture?
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 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 a Restaurant 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 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, the franchise agreement does not guarantee any revenue, profits, or success of the business venture. The agreement explicitly states that prospective franchisees acknowledge they have not received or relied on any guarantee or assurance regarding the financial performance of the business.
Checkersrallys emphasizes that the restaurant industry is highly competitive and subject to constantly changing market conditions. The success of a Checkersrallys restaurant is largely dependent on the franchisee's own business abilities, efforts, and financial resources. This is a common disclaimer in franchise agreements, as the franchisor cannot control the franchisee's management skills or local market conditions.
This lack of guarantee highlights the importance of conducting thorough due diligence before investing in a Checkersrallys franchise. Prospective franchisees should carefully review the Franchise Disclosure Document, conduct market research, and seek advice from experienced business advisors to assess the potential risks and rewards of the franchise opportunity. Understanding that success depends on their own capabilities and efforts is crucial for any potential Checkersrallys franchisee.