Can a Checkers franchisee change their designated Operating Partner without prior approval?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are, or at any time become, a business corporation, partnership, limited liability company or other legal entity, you must designate as the "Operating Partner" an individual approved by us who must: (a) own and control, or have the right to own and control (subject to conditions reasonably acceptable to us), not less than 10% of your equity and voting rights; (b) have the authority to bind you regarding all operational decisions with respect to your Franchised Restaurant; and (c) have completed our training program to our satisfaction. You may not change the Operating Partner without our prior written consent.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 64–65)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if a franchisee is a business entity (corporation, partnership, LLC, etc.), they must designate an Operating Partner who meets specific criteria. This individual must be approved by Checkers, own or have the right to own at least 10% of the franchisee's equity and voting rights, have the authority to make operational decisions, and complete Checkers' training program.
The FDD clearly states that a Checkers franchisee cannot change their designated Operating Partner without obtaining prior written consent from Checkers. This requirement ensures that the replacement Operating Partner also meets Checkers' standards for experience, training, and financial stake in the franchise.
This stipulation is important for prospective Checkers franchisees to understand, especially if they plan to operate their franchise through a business entity. They should be prepared to seek approval from Checkers before making any changes to their Operating Partner. Failing to do so could potentially result in a breach of the franchise agreement.