If a franchisee independently purchases a Checkers restaurant from a third party, is an initial franchise fee paid to Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If you sign the Franchise Agreement as part of your independent purchase of (or receipt of transferred ownerships interests in) the Franchised Restaurant's assets from a third party owner, then you will not pay us an initial franchise fee, but you must ensure that we receive the full amount of the associated transfer fee due to us as a result of that transaction (by way of example only, see successor franchise fee under Item 6).
Source: Item 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, if you sign a Franchise Agreement as part of your independent purchase of a Checkers restaurant's assets from a third-party owner, you will not pay Checkers an initial franchise fee. However, you must ensure that Checkers receives the full amount of any associated transfer fee due to them as a result of that transaction. Item 6 of the FDD would likely contain more information about any transfer fees that may be due.
It is important to note that this applies specifically to independent purchases from third-party owners. If you are buying an existing Checkers restaurant directly from Checkers or one of its affiliates, you would instead pay an asset transfer fee of $10,000 in addition to the initial franchise fee.
This policy of waiving the initial franchise fee for third-party transfers can be a significant benefit for franchisees looking to acquire an existing Checkers location, as it reduces the upfront investment required. However, prospective franchisees should carefully review Item 6 of the FDD and consult with Checkers to understand the full scope of any transfer fees or other obligations associated with the transaction.