What is the franchisee required to do regarding site selection within the Designated Area for Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
veloping the Franchised Restaurant as we deem appropriate. (Franchise Agreement, Sections 3.02 and 3.03);
If you have suggested a location for the Franchised Restaurant which we approve before or concurrently with the execution of the Franchise Agreement, the location will be identified in the Franchise Agreement. If we and you have not agreed upon an approved location for the Franchised Restaurant before signing the Franchise Agreement, then you must select a site for the Franchised Restaurant within the geographic area we designate ("Designated Area"). You must, within 180 days after the date of the Franchise Agreement, locate and submit for our approval a site acceptable to us within the Designated Area for the Franchised Restaurant. We will approve or disapprove each site that you propose according to our general criteria for selection of a Checkers Restaurant or Rally's Restaurant site. The site must meet our criteria for demographic characteristics; traffic patterns; parking; character of neighborhood; competition from, proximity to, and nature of other businesses; size; appearance; and other physical and commercial characteristics. 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 provide you with our standard site selection criteria and on-site evaluations of sites, as we deem appropriate. If you enter into a Development Agreement with us, you must select sites within your specified Development Area and we will approve them in accordance with our then current criteria for selection of a Checkers Restaurant or Rally's Restaurant site.
Before you acquire, by lease or purchase, any site for your Restaurant, you must submit a franchise site package to us in the form, content and substance as we then require. We will review each site package and determine whether to accept or reject the site after considering factors we deem appropriate, including the general location and neighborhood, demographic information, traffic patterns, access, visibility, location of other restaurants and food establishments, and size, configuration, appearance and other physical characteristics of the site. We will use reasonable efforts to approve or disapprove the proposed site within 30 days after receiving your written proposal. Upon our approval of a site, we will insert the address into Exhibit B of the Franchise Agreement, and it will be the Premises. Within 60 days after our approval of a site for the Premises, you agree to deliver a copy of the fully signed lease, sublease or purchase contract and the franchise addendum to lease agreement. In some cases, we may sublease the Premises to you, but we do not typically do so.
You must apply for all requisite government approvals and permits to develop the Premises within 60 days after you sign the proposed lease, sublease or purchase agreement. You must complete construction or installation of the Franchised Restaurant within 180 days from receipt of all government approvals and permits. You must open the Franchised Restaurant within 14 days after the date construction or installation is completed, or, for those Restaurants that received training support from us, within 19 days after the date construction or installation is completed.
If, after expending good faith best efforts (as we determine in our sole judgment), you are unable to comply with the time periods required to either locate or secure a site for your Franchised Restaurant, or you are unable to obtain all required approvals and permits or timely complete construction of the Restaurant, then we may grant you a one-time extension in our sole discretion. If we grant you an extension, you must pay the extension fee as described in Item 6. If you are unable to locate or secure a site we approve for your Franchised Restaurant, we may terminate the Franchise Agreement.
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- We will provide initial training to you (or your Operating Partner) and your manager. This training is described in detail later in this Item. (Franchise Agreement, Section 4.01);
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, if a location isn't approved before signing the Franchise Agreement, the franchisee is responsible for selecting a site within the Designated Area. Within 180 days of the Franchise Agreement date, the franchisee must find and propose a site for Checkersrallys's approval.
Checkersrallys will assess the proposed site based on criteria like demographics, traffic, parking, neighborhood character, competition, size, appearance, and other physical and commercial traits. While Checkersrallys offers guidance in analyzing the market area and site feasibility, they do not conduct site selection themselves. The franchisee must submit a franchise site package that meets Checkersrallys's requirements for review and approval, considering factors like location, demographics, traffic, visibility, and site characteristics. Checkersrallys aims to approve or reject the site within 30 days of receiving the proposal.
Upon approval, the site's address is added to the Franchise Agreement. Within 60 days of site approval, the franchisee must provide a fully signed lease or purchase contract along with a franchise addendum to the lease agreement. The franchisee is also responsible for securing all necessary government approvals and permits to develop the site within 60 days of signing the lease or purchase agreement. Construction must be completed within 180 days of obtaining all government approvals, and the restaurant must open within 14 to 19 days after construction is finished, depending on training support.
If the franchisee faces difficulties in meeting these deadlines despite good faith efforts, Checkersrallys may grant a one-time extension, requiring the franchisee to pay an extension fee as outlined in Item 6. Failure to secure an approved site can lead to the termination of the Franchise Agreement. This highlights the importance of diligent site selection and adherence to the franchisor's timelines to avoid potential financial and contractual repercussions.