What are the character and experience requirements for a proposed Checkers transferee or their owners?

According to Checkers' 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their franchise to a new owner, the proposed transferee (or their owners if the transferee is a legal entity) must meet certain character and experience requirements. Specifically, the transferee and their owners must provide all requested information to Checkers in a timely manner. The individuals must be of good character and reputation. They also need to demonstrate sufficient business experience, aptitude, and financial resources to successfully operate the Checkers franchise.

These conditions are typical in franchising, as franchisors want to ensure that any new franchisee taking over an existing location is well-qualified to maintain brand standards and operational success. Checkers retains the right to approve or disapprove of a transfer based on these factors. This protects the overall brand and the interests of other franchisees within the Checkers system.

Prospective franchisees should note that Checkers' assessment of a transferee's qualifications is at their discretion. While the FDD states that Checkers will not unreasonably withhold approval, the final decision rests with them. A franchisee looking to sell their Checkers location should carefully vet potential buyers to ensure they meet these criteria, to facilitate a smooth transfer process. It is also important to maintain compliance with the franchise agreement, as any non-compliance by the current franchisee can also impede the transfer process.