Besides the initial franchise fee, what other fee might be required when purchasing a company-owned Checkers restaurant?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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We may offer for sale, and sell as franchises, some company-owned Checkers Restaurants or Rally's Restaurants in certain geographic areas. In connection with these franchise transactions, we may retain franchise or business brokers to negotiate with a prospective franchisee to reach mutually acceptable terms of a separate sale of assets agreement and any sale, lease or sublease of the real estate. In addition, a Franchise Agreement for the purchased restaurant(s) will have to be signed (which, in addition to the normal initial franchise fee, will require payment of a $10,000 asset transfer fee – See Item 5) and, possibly, also a Development Agreement for the further development of Checkers Restaurants or Rally's Restaurants in the geographical area where the purchased restaurant(s) is/are located. Depending on the circumstances, we also may vary the financial and other terms of our Franchise Agreement and Development Agreement in connection with the sale of company-owned Checkers Restaurants or Rally's Re
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–14)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, in addition to the initial franchise fee, a franchisee purchasing a company-owned Checkers restaurant will be required to pay a $10,000 asset transfer fee. This fee is detailed in Item 5 of the FDD.
Furthermore, the document states that a Development Agreement might also be necessary for the further development of Checkers restaurants in the area where the purchased restaurant is located. The financial and other terms of both the Franchise Agreement and the Development Agreement may vary when purchasing a company-owned Checkers restaurant.
This means that prospective franchisees need to be prepared for additional costs beyond the standard franchise fee when acquiring an existing company-owned location. They should carefully review Item 5 of the FDD and discuss these potential fees and varying terms with Checkers to fully understand the financial implications of purchasing a company-owned restaurant.