What conditions must be satisfied for Checkers to approve a transfer of the Development Agreement by the developer?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE OR OTHER AGREEMENT | SUMMARY | |
|---|---|---|---|
| l. | Franchisor's approval of transfer by developer | Sections 7.01 and 7.02 | We have the right to approve all transfers but will not unreasonably withhold approval if conditions satisfied. |
| m. | Conditions for franchisor's approval of transfer | Section 7.02 | You must transfer all of your Restaurants; be in compliance with agreements; have at least one Restaurant open; sign release and non-compete for each transferred restaurant; and do other things we request. Transferee must qualify, sign existing agreement and pay transfer fee; transferee cannot be public company. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 66–71)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers has the right to approve all transfers of the Development Agreement, and will not unreasonably withhold approval if certain conditions are satisfied.
To gain approval from Checkers for a transfer, the developer must transfer all of their restaurants, be in compliance with all agreements, and have at least one restaurant open. Additionally, the developer needs to sign a release and non-compete agreement for each transferred restaurant, and complete any other actions Checkers requests.
The prospective transferee must also meet certain requirements to gain Checkers' approval. The transferee must qualify as a Checkers franchisee, sign the existing agreement, and pay the transfer fee. The transferee cannot be a public company.