Is Checkersrallys responsible if a suggested or approved site for a Checkersrallys Restaurant fails to meet the franchisee's expectations?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
3.01 Site Acceptance Disclaimer.You acknowledge and agree that, if we suggest, approve, or give you information regarding a site for the Premises, our action is not a representation or warranty of any kind, express or implied, of the site's suitability for a Restaurant or any other purpose. We do not represent that we, or any of our Affiliates, owners, employees or agents, have special expertise in selecting sites. Our action indicates only that we believe that the site meets our then acceptable criteria and not that the Franchised Restaurant will be profitable or successful at the Premises. Applying criteria that have appeared effective with other sites and premises might not accurately reflect the potential for all sites and premises, and demographic and/or other factors included in or excluded from our criteria could change, altering the potential of a site and premises. The uncertainty and instability of these criteria are beyond our control, and we are not responsible if a site and premises we suggest or approve for the location of a Restaurant fails to meet your expectations. Accordingly, you acknowledge and agree that your acceptance of the franchise for a Restaurant pursuant to this Agreement is based on your own independent investigation of the site's suitability for the Premises.
In consideration of our acceptance of the Premises, you and your Owners release us, and our Affiliates, officers, directors, employees and agents from any and all loss, damage and liability arising from or in connection with the selection and/or acceptance of the Premises for development as a Restaurant.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys is not responsible if a suggested or approved site fails to meet a franchisee's expectations. Checkersrallys states that any suggestion, approval, or information provided regarding a site should not be interpreted as a representation or warranty of the site's suitability for a restaurant or any other purpose. Checkersrallys clarifies that their approval only indicates the site meets their criteria at that time, not a guarantee of profitability or success.
The FDD emphasizes that the suitability of a location can be affected by unpredictable factors, and criteria that have been effective for other locations may not accurately reflect the potential of all sites. These factors are beyond Checkersrallys's control. Therefore, Checkersrallys will not be held liable if a suggested or approved site does not meet the franchisee's expectations.
The document makes it clear that the franchisee is responsible for conducting their own independent investigation of the site's suitability. By accepting the franchise, the franchisee acknowledges they are relying on their own assessment of the location. Furthermore, the franchisee releases Checkersrallys from any liability related to the selection and acceptance of the premises for development as a restaurant.