When is the asset transfer fee due for a Checkers restaurant purchase from the franchisor?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ted pursuant to a separate agreement between us and you or your Affiliate for multi-unit development of Restaurants (a "Development Agreement"), the initial franchise fee is subject to any applicable credit of a portion of the development fee against the initial franchise fee in accordance with the provisions of the relevant Development Agreement. If this Agreement is executed in connection with your purchase of an existing Restaurant from us or our Affiliate, then you must also pay us an asset transfer fee of Ten Thousand Dollars ($10,000) in addition to the initial franchise fee, payable on or before closing of your purchase of the Franchised Restaurant's assets. Notwithstanding the foregoing, if this Agreement is executed in connection with your indep
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, if a franchisee is purchasing an existing Checkers restaurant from the franchisor or its affiliate, an asset transfer fee of $10,000 is required. This fee, in addition to the initial franchise fee, must be paid on or before the closing date of the asset purchase.
However, the FDD also states that if the franchisee is independently purchasing the Checkers restaurant's assets from a third-party owner, they will not be required to pay the initial franchise fee. In this scenario, Checkers must receive any associated transfer fee that is due in connection with that transaction on or before the effective date.
It is important for prospective franchisees to note the distinction between purchasing from the franchisor versus a third party, as it affects the fees and their due dates. Franchisees should confirm all payment terms and conditions with Checkers during their due diligence process.