If a Checkers transferee is required to execute a new franchise agreement, what differences might it contain?

According to Checkers' 2025 Franchise Disclosure Document, if a franchise is transferred and a new franchise agreement is required, the terms of that new agreement may differ from the original. Specifically, the new agreement may include different royalties, advertising contributions and expenditures, duration, and other rights and obligations compared to the original agreement. These new terms may also need to be guaranteed by the original franchisee and their owners.

This means that a potential buyer of an existing Checkers franchise should carefully review the terms of the new franchise agreement offered by Checkers, as they may not be the same as the terms under which the original franchisee operated. The transferee may face different financial obligations or operational requirements. It is also important to note that the original franchisee may still be responsible for guaranteeing the transferee's obligations under the new agreement.

For a prospective Checkers franchisee, this highlights the importance of understanding all potential costs and obligations before purchasing a franchise, whether it's a new franchise or a transfer. Consulting with a franchise attorney and financial advisor is crucial to fully assess the implications of any new franchise agreement and to ensure that the terms are favorable and sustainable for the business.