As of January 1, 2024, how many company-operated Checkers restaurants were at the beginning of the period?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
"CDI", the "Company", "we", "our", or "us"), operates and franchises quick service restaurants in the United States under two similar operating brands, Checkers and Rally's.
The following table summarizes the number and mix of Company-operated and franchised restaurants in operation at the end of each period presented:
| January 1, 2024 (Successor) Zero Successor) For the Periods Ended January 2, January 3, 2022 (Predecessor) Zero Successor) Zero Successor) Zero Successor) Zero Successor) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| · · | 2023 | 2022 | ||||||||
| Company-operated restaurants | ||||||||||
| Beginning of period | 255 | 266 | 264 | |||||||
| New | 2 | - | 3 | |||||||
| Acquired from franchisee | 4 | 3 | 3.7 | |||||||
| Sold to franchisee | 91 | (9) | 7 | |||||||
| Closed | (19) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, at the beginning of the period of January 1, 2024, there were 255 company-operated Checkers restaurants. This number reflects the restaurants Checkers directly managed at the start of that fiscal year.
Throughout 2024, Checkers' company-operated restaurant count changed due to several factors. Two new restaurants were opened, and four were acquired from franchisees. However, 91 restaurants were sold to franchisees, and 19 were closed. These transactions resulted in a net decrease in company-operated restaurants, bringing the total down to 238 by the end of the period.
For a prospective franchisee, this data provides insight into Checkers' corporate strategy regarding company-operated versus franchised locations. The decrease in company-operated stores, due to sales to franchisees, may indicate a strategic move to favor franchise operations. Monitoring these trends over multiple years, as presented in the FDD, can help potential franchisees understand the long-term direction of Checkers' business model and the balance between corporate and franchised locations.