If a Checkers transferee is required to upgrade the Franchised Restaurant, what fixtures, furniture, equipment, signs and supplies must be added or replaced?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- (h) the transferee agrees (if the transfer is of this Agreement) to upgrade, remodel, expand and/or remodel the Franchised Restaurant in accordance with our current prescribed plans, specifications and design model for Restaurants (including, without limitation, any modifications or adjustments we authorize and timely introduce for similarly-situated Restaurants, or otherwise incorporate into the System for all franchisees) and to add or replace fixtures, furniture, 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);
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if a franchise agreement is transferred, the transferee might need to upgrade, remodel, and/or expand the franchised restaurant. This would be based on Checkers' current plans, specifications, and design model for restaurants, including any modifications or adjustments Checkers makes for similar restaurants or incorporates into the system for all franchisees.
The transferee may be required to add or replace fixtures, furniture, equipment, signs, and supplies to meet Checkers' current requirements and specifications for restaurants. Checkers will inform the transferee of the specific actions needed and the timeframe for completion before the transfer's effective date.
This requirement ensures that all Checkers restaurants maintain a consistent brand image and meet current standards. For a potential franchisee, this means that if they purchase an existing Checkers location, they may need to invest in upgrades to align with the latest brand standards, potentially incurring significant costs. It is important to understand the scope and cost of these required upgrades before completing the transfer.