According to Checkers's 2025 Franchise Disclosure Document, if a franchisee requests a transfer before opening their restaurant and Checkers approves it, there is a pre-closing condition that requires payment in addition to the transfer fee. The franchisee must pay Checkers the full standard amount of the initial franchise fee (as measured on the Effective Date of your Franchise Agreement) that was reduced or waived pursuant to the addendum. This means that any initial fee reduction or waiver that the franchisee received when signing the franchise agreement must be repaid to Checkers before the transfer can be completed.

This condition ensures that Checkers recovers the initial franchise fee benefit they provided to the franchisee if the franchisee decides to transfer the franchise before actually opening the restaurant. This protects Checkers's investment in initially granting the franchise.

For a prospective Checkers franchisee, this means that if they anticipate a potential need to transfer the franchise before opening, they should factor in the cost of repaying any initial fee reductions or waivers. This could significantly increase the cost of transferring the franchise and should be carefully considered when making the decision to request a transfer. The franchisee should clarify the exact amount of the initial fee reduction with Checkers to fully understand the financial implications of a pre-opening transfer.