Does the Checkersrallys Restaurant Development Agreement outline site selection assistance, and if so, under what section?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
3. GRANT OF FRANCHISES.
- 3.01 Site Selection Assistance.
We will furnish you with our standard site selection criteria for Restaurants, as we may establish at any time and from time to time.
We also will provide such on-site evaluation of sites proposed pursuant hereto as we deem necessary or appropriate.
- 3.02 Applications for Franchises.
We will grant franchises to you for the operation of that cumulative number of Restaurants set forth in Exhibit A and located within the Development Area, subject to the following conditions:
- (a) You must submit to us, in accordance with procedures we establish from time to time, a complete application for a franchise and site application form for each site for a Restaurant that you propose to develop and operate and that you in good faith believe to conform to our then current standard site selection criteria for Restaurants.
Such site application shall include a description of each proposed site, including a summary of traffic patterns; parking; character of neighborhood; competition from, proximity to, and nature of other businesses, along with a letter of intent or other evidence confirming your favorable prospects for obtaining the proposed site;
- (b) We will accept or reject each site for which you submit to us complete applications in accordance with Section 3.02(a) and, if we accept such site, we will do so by delivering our standard franchise site package.
Our site acceptance letter, duly executed by us, is the exclusive means by which we accept a proposed site, and no other direct or indirect representation, approval or acceptance, whether in writing or verbally, by any of our officers, employees or agents, shall be effective or bind us.
We will use all reasonable efforts to make a site acceptance decision and, if the site is accepted, deliver a site acceptance letter to you, within 30 days after we acknowledge receipt of the complete site report and any other materials we have requested.
In deciding whether to accept or reject a site you propose, we may consider such factors as we, in our sole discretion, deem appropriate, including the general location and neighborhood, demographic information, traffic patterns, access, visibility, location of other restaurants and food establishments (including other Restaurants) and size, condition, configuration, appearance and other physical characteristics of the site.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the Restaurant Development Agreement does outline site selection assistance. Specifically, Section 3.01, titled "Site Selection Assistance," details the support Checkersrallys provides to franchisees in this crucial area. This section indicates that Checkersrallys will furnish its standard site selection criteria, which may be updated periodically.
In addition to providing site selection criteria, Checkersrallys also offers on-site evaluations of proposed locations, determining the necessity and appropriateness of such evaluations on a case-by-case basis. Furthermore, franchisees are required to submit a complete application for a franchise and a site application form for each proposed location. This application must include a detailed description of the site, covering aspects such as traffic patterns, parking availability, neighborhood characteristics, and competitive landscape, along with evidence of favorable prospects for securing the site.
Checkersrallys retains the right to accept or reject any proposed site, communicating its decision through a standard franchise site package and a site acceptance letter. The FDD specifies that this letter is the exclusive means of site acceptance, superseding any other form of approval. Checkersrallys aims to make a decision within 30 days of receiving a complete site report, considering factors like location, demographics, traffic, visibility, and the presence of other food establishments. While Checkersrallys provides site selection assistance, the document makes it clear that the franchisee's decision to develop and operate a restaurant at any site is based solely on their own independent investigation.