What does Checkers consider when evaluating a proposed transferee's business experience for a franchise transfer?
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;
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, when a franchisee seeks to transfer their franchise to a new owner, Checkers assesses the proposed transferee's business experience as part of the approval process. Specifically, Checkers requires that the proposed transferee, or their owners if the transferee is a legal entity, must demonstrate sufficient business experience, aptitude, and financial resources to successfully operate the franchised restaurant.
This evaluation is crucial for Checkers to ensure that the new franchisee has the capabilities to maintain the brand's standards and operational efficiency. The prospective transferee must provide all requested information to Checkers on a timely basis. Checkers also stipulates that the individuals involved must be of good character and reputation and otherwise meet Checkers' approval.
This condition protects Checkers by ensuring that franchisees are competent and capable of running the business effectively. For a prospective franchisee looking to acquire an existing Checkers location, it is important to highlight any relevant business experience and financial stability to meet Checkers' requirements for franchise transfer approval.