Which items in the Checkersrallys Disclosure Document relate to the franchisee's site selection and acquisition/lease obligations?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| OBLIGATION | SECTION IN AGREEMENT | DISCLOSURE DOCUMENT ITEM |
|---|---|---|
| a. Site selection and acquisition/lease | Sections 3.01, 3.02, 3.03, and Exhibit B of the Franchise Agreement; and Sections 3.01 and 3.02 and Exhibit A of the Development Agreement | Items 7, 8 and 11 |
Site Selection
You must select a site for your Franchised Restaurant that conforms to our standard site selection criteria and that we accept or reject pursuant to our standard franchise site package (see Item 11).
We will provide guidance to you in locating and developing 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.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 44–46)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, specifying which sections of the Franchise Agreement and which Disclosure Document Items pertain to site selection and acquisition/lease obligations. Specifically, Sections 3.01, 3.02, 3.03, and Exhibit B of the Franchise Agreement, along with Sections 3.01 and 3.02 and Exhibit A of the Development Agreement, are relevant. These obligations are further detailed in Items 7, 8, and 11 of the Disclosure Document. This means that franchisees need to carefully review these sections and items to understand their responsibilities and Checkersrallys's requirements regarding site selection and property arrangements.
Item 8 also discusses site selection, stating that franchisees must select a site that conforms to Checkersrallys's standard site selection criteria, which Checkersrallys must then approve or reject based on a standard franchise site package, as further detailed in Item 11. Checkersrallys also retains the right to approve the terms of any lease, sublease, or purchase contract for the premises. Any lease or sublease must include specific provisions outlined in Checkersrallys's required form of franchise addendum to lease agreement.
Item 11 provides further clarification, stating that Checkersrallys will provide guidance in locating and developing the franchised restaurant as deemed appropriate. If a location is approved before or during the signing of the Franchise Agreement, it will be identified in the agreement. If a location hasn't been agreed upon, the franchisee must select a site within a designated geographic area within 180 days of the Franchise Agreement date and submit it for approval. Checkersrallys will approve or disapprove sites based on criteria such as demographic characteristics, traffic patterns, parking, neighborhood character, competition, size, appearance, and other physical and commercial characteristics. While Checkersrallys will offer assistance in analyzing the market area and determining site feasibility, they will not conduct site selection activities for the franchisee.