What conditions must a Checkers franchisee meet to obtain franchisor approval for a transfer?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
corporation, partnership, limited liability company or other legal entity, your Owners. Accordingly, neither you nor any of your Owners may transfer the Franchise without our approval and without complying with all of the provisions of Section 13. Any transfer without such approval or compliance constitutes a breach of this Agreement and is void and of no force or effect.
- 13.02 Conditions for Approval. If we have not exercised our right of first refusal under Section 13.06, we will not unreasonably withhold our approval of a transfer of the Franchise that meets all of the reasonable restrictions, requirements and conditions we impose on the transfer, the transferor(s) and/or the transferee(s), including the following:
- (a) you have completed development of the Franchised Restaurant and are operating the Franchised Restaurant in accordance with this Agreement;
- (b) you and your Owners and Affiliates are in compliance with the provisions of this Agreement and all other agreements with us or any of our Affiliates;
- (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;
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, a franchisee needs to meet several conditions to get approval from Checkers for a franchise transfer. Checkers will not unreasonably withhold approval if the transfer meets their restrictions, requirements, and conditions.
First, the franchisee must have completed the development of the Franchised Restaurant and be operating it according to the Franchise Agreement. The franchisee, their Owners, and Affiliates must also be in compliance with the provisions of the Franchise Agreement and all other agreements with Checkers or its Affiliates.
Additionally, the proposed transferee (or its Owners if the transferee is a legal entity) must provide all requested information on time and must be of good character and reputation. They need to have sufficient business experience, aptitude, and financial resources to operate the Franchised Restaurant, and must otherwise meet Checkers' approval. The transferee (or its operating partner) and its operators must have completed Checkers' initial training program to Checkers' satisfaction. The transferee (and its owners) must agree to be bound by all the provisions of the Franchise Agreement for the remainder of its term or, at Checkers' option, execute Checkers' then current standard form of franchise agreement and related documents used in the state in which the Franchised Restaurant is located.