If a Checkers franchisee is transferring the franchise, what must they ensure regarding the proposed transferee's business activities at the Franchised Restaurant?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ture, equipment, signs and supplies in accordance with our then current requirements and specifications for Restaurants within the time period we specify following the effective date of the transfer (we will advise the transferee before the effective date of the transfer of the specific actions that it must take and the time period within which such actions must be taken);
- (i) you must ensure that we receive, before we will approve any proposed transferee to begin conducting business activities at the Franchised Restaurant as its authorized operator, a transfer fee equal to Twenty Thousand Dollars ($20,000) (or, if the proposed transferee is a then-current franchisee of a Restaurant, a transfer fee equal to Ten Thousand Dollars ($10,000)), provided, however, if this Agreement is being transferred as part of a transaction involving franchise agreements for multiple Restaurants and the franchise agreement for each Restaurant will be transferred on the same day, notwithstanding anything to the contrary in any other franch
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, a franchisee looking to transfer their franchise must ensure that Checkers receives a transfer fee before the proposed transferee begins conducting business activities at the Franchised Restaurant as its authorized operator. The standard transfer fee is $20,000. However, if the proposed transferee is a current Checkers franchisee, the transfer fee is reduced to $10,000.
If the transfer involves multiple Checkers Restaurants and their franchise agreements are transferred on the same day, the transfer fee structure changes. The fee will be $20,000 (or $10,000 if the transferee is an existing franchisee) for the first restaurant, plus an additional $5,000 for each subsequent restaurant included in the transfer.
This fee structure incentivizes transfers to existing franchisees and provides a tiered approach for larger transactions. It is important for franchisees to factor these transfer fees into their financial planning when considering selling their franchise.