For Checkers franchises operated by a business entity, what three requirements must the designated 'Operating Partner' meet?
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 requirements. This individual must be approved by Checkers.
First, the Operating Partner must own and control, or have the right to own and control, at least 10% of the business entity's equity and voting rights, subject to conditions reasonably acceptable to Checkers. This ensures the Operating Partner has a vested interest and a significant stake in the franchise's success. Second, the Operating Partner must have the authority to bind the business entity regarding all operational decisions related to the franchised restaurant. This means they have the power to make critical decisions for the restaurant's day-to-day operations.
Finally, the Operating Partner must complete Checkers' training program to the franchisor's satisfaction. This ensures the Operating Partner is properly trained in the Checkers system and can effectively manage the restaurant. Checkers must provide prior written consent to any changes to the Operating Partner. The Operating Partner is also required to sign a Nondisclosure and Non-Competition Agreement.