If the offeror proposes to buy other property or rights from the Checkers franchisee, must this be disclosed to Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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
the transfer of the Development Rights must reflect the bona fide price offered therefor and not reflect any value for any other property or rights.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, if a potential buyer offers to purchase additional assets or rights from a Checkers franchisee as part of a deal to acquire the Development Rights, Checkers requires full disclosure. Specifically, the offer for these additional properties or rights must be presented as a separate, simultaneous offer.
This separate offer ensures transparency, allowing Checkers to accurately assess the value of the Development Rights independently from any other assets involved in the transaction. The price and terms for the Development Rights must reflect their true market value and not be inflated by the inclusion of other property or rights.
This requirement protects Checkers's interests by preventing franchisees from potentially undervaluing the Development Rights in exchange for a higher price on other assets. It also allows Checkers to maintain control over who enters their franchise system and ensures that the transfer of Development Rights is based on a fair and accurate valuation.