Does Checkersrallys warrant the suitability of a suggested or approved site for a Restaurant?
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 does not provide any warranty regarding the suitability of a site for a restaurant, even if Checkersrallys suggests, approves, or provides information about the site. Checkersrallys explicitly states that any such action should not be interpreted as a representation or warranty of any kind, whether express or implied, concerning the site's appropriateness for a Checkersrallys Restaurant or any other purpose. Checkersrallys also clarifies that neither they, nor their affiliates, owners, employees, or agents, claim to possess special expertise in site selection.
This disclaimer means that while Checkersrallys may offer guidance or approval based on their criteria, the ultimate responsibility for assessing the site's suitability rests with the franchisee. The document emphasizes that criteria effective for other locations may not guarantee success for a new site, and demographic or other factors can change, affecting the site's potential. Checkersrallys is not liable if a suggested or approved site fails to meet the franchisee's expectations.
Therefore, Checkersrallys requires franchisees to conduct their own independent investigation to determine if the site is suitable. By accepting the franchise, the franchisee agrees to release Checkersrallys from any loss, damage, or liability connected to the selection or acceptance of the premises for development as a Checkersrallys Restaurant. This underscores the importance of thorough due diligence on the part of the franchisee when evaluating potential locations.