What characteristics must the proposed transferee of a Checkers franchise possess?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) the proposed transferee, or its Owners (if the proposed transferee is a legal entity), must provide us on a timely basis all information we request, must be individuals acting in their individual capacities who are of good character and reputation, who must have sufficient business experience, aptitude and financial resources to operate the Franchised Restaurant, and who must otherwise meet our approval;
- (d) the proposed transferee may not be an entity, or be affiliated with an entity, that is required to comply with reporting and information requirements of the Securities Exchange Act of 1934, as amended;
- (e) the transferee (or its operating partner) and its operators must have completed our initial training program to our satisfaction;
- (f) the transferee (and its owners) must agree to be bound by all of the provisions of this Agreement for the remainder of its term or, at our option, execute our then current standard form of franchise agreement and related documents used in the state in which the Franchised Restaurant is located (which
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, a proposed transferee must meet several requirements to be approved. The individuals must act in their individual capacities and be of good character and reputation. They also need to demonstrate sufficient business experience, aptitude, and financial resources to successfully operate the Checkers restaurant.
Furthermore, the proposed transferee cannot be an entity, or affiliated with an entity, that is required to comply with the reporting and information requirements of the Securities Exchange Act of 1934. The transferee, along with its operators, must also complete Checkers's initial training program to the company's satisfaction.
Finally, the transferee and its owners must agree to be bound by all the provisions of the existing franchise agreement for the remainder of its term. Alternatively, at Checkers's option, they may be required to execute the then-current standard form of the franchise agreement and related documents used in the state where the franchised restaurant is located.