Is Checkersrallys' suggestion or approval of a site a warranty of its suitability?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that, if we suggest, approve, or give you information regarding a site, 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 a Restaurant will be profitable or successful at the site.
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 decision to develop and operate a Restaurant at any site is based solely on your own independent investigation of the suitability of the site for a Restaurant
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys' 2025 Franchise Disclosure Document, any suggestion, approval, or information provided by Checkersrallys regarding a site does not constitute a representation or warranty of any kind, either express or implied, concerning the site's suitability for a restaurant or any other purpose. Checkersrallys explicitly states that neither they nor their affiliates, owners, employees, or agents possess special expertise in site selection. Their approval merely indicates that the site meets their acceptable criteria at that time, not a guarantee of profitability or success.
Checkersrallys emphasizes that the criteria they use, even if effective in the past, may not accurately predict the potential of all sites. Demographic and other factors can change, affecting a site's potential. The uncertainty and instability of these criteria are beyond Checkersrallys' control, and they are not responsible if a site they suggest or approve fails to meet the franchisee's expectations.
Therefore, Checkersrallys requires franchisees to acknowledge and agree that their decision to develop and operate a restaurant at any site is based solely on their own independent investigation of the site's suitability. This means the franchisee bears the ultimate responsibility for assessing the location and determining if it aligns with their business goals and risk tolerance. Prospective franchisees should conduct thorough due diligence, including market research, traffic studies, and competitive analysis, before committing to a site. This is a common practice in franchising, where franchisees are expected to take ownership of their location decisions.