If transferring multiple Checkers Restaurants, what is the transfer fee structure?
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, the transfer fee structure for multiple restaurants depends on whether the transferee is a new or existing franchisee. The standard transfer fee for a single Checkers restaurant is $20,000 for a new franchisee and $10,000 for a current franchisee. However, when transferring multiple restaurants simultaneously, the fee structure changes.
For multiple restaurants transferred together, Checkers charges the standard $20,000 or $10,000 (depending on whether the transferee is a new or existing franchisee) for the first restaurant. For each additional restaurant included in the transfer, an additional fee of $5,000 is applied. This means that if a current Checkers franchisee were to acquire three additional restaurants in a single transaction, the transfer fee would be $10,000 for the first restaurant plus $5,000 for each of the other two restaurants, totaling $20,000.
This transfer fee is due before Checkers approves the transfer and allows the transferee to begin operating the restaurants. It's important to note that this fee structure applies specifically when the franchise agreements for all restaurants are transferred on the same day. Prospective franchisees should carefully consider these fees when planning to acquire multiple Checkers locations through a transfer.