If transferring a Checkers franchise agreement, what must the transferee agree to regarding upgrades, remodels, and expansions of the Franchised Restaurant?
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's 2025 Franchise Disclosure Document, a transferee of a franchise agreement must agree to upgrade, remodel, and/or expand the franchised restaurant. This must be done according to Checkers's current prescribed plans, specifications, and design model for restaurants. These standards include any modifications or adjustments Checkers authorizes for similarly situated restaurants or incorporates into the system for all franchisees.
The transferee must also agree to add or replace fixtures, furniture, equipment, signs, and supplies in accordance with Checkers's then-current requirements and specifications for restaurants. These actions must be completed within the time period Checkers specifies following the effective date of the transfer.
Importantly, Checkers will inform the transferee of the specific actions required and the timeframe for completion before the transfer's effective date. This ensures the transferee is aware of the obligations before finalizing the transfer. This requirement ensures that all Checkers locations maintain a consistent brand image and meet current standards, which can impact the customer experience and the restaurant's performance.