If a Checkers franchisee desires to transfer the Development Rights, what must they obtain from a purchaser?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If you or any of your Owners desires to transfer the Development Rights for legal consideration, you or such Owner(s) must obtain a bona fide, executed written offer and earnest money deposit in the amount of at least 5% of the offering price from a responsible and fully disclosed purchaser and must deliver immediately to us a complete and accurate copy of such offer.
If the offeror proposes to buy any other property or rights from you or any of your Owners or Affiliates (other than rights under development and franchise agreements for Restaurants) as part of the bona fide offer, the proposal for such property or rights must be set forth in a separate, contemporaneous offer that is fully disclosed to us, and the price and terms of purchase offered to you or your Owners for
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their Development Rights, they must first obtain a bona fide, executed written offer from a responsible and fully disclosed purchaser. This offer must also include an earnest money deposit amounting to at least 5% of the offering price. The franchisee is then required to provide Checkers with a complete and accurate copy of this offer.
If the offer includes the purchase of any other property or rights beyond the Development Rights, such as rights under development and franchise agreements for Restaurants, these must be outlined in a separate, contemporaneous offer that is fully disclosed to Checkers. The price for the Development Rights must be clearly distinguished and reflect a bona fide price, without incorporating value from any other property or rights.
Checkers retains the right of first refusal, allowing them to purchase the Development Rights themselves at the price and terms specified in the offer. This option is exercisable within 30 days of receiving the offer from the franchisee. If Checkers chooses not to exercise this option, the franchisee may proceed with the sale to the original offeror, subject to Checkers' final approval of the transfer. This approval will not be unreasonably withheld as long as the transfer meets Checkers' requirements and conditions.