What is the length of the successor franchise term that Checkers offers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
e, of our decision whether or not you have the right to acquire a successor franchise pursuant to Section 15.01. Notwithstanding any notice of our decision that you have the right to acquire a successor franchise for the Franchised Restaurant, your right will be subject to your continued compliance with all the provisions of this Agreement up to the date of its expiration.
15.03 Agreements. If you have the right to acquire a successor franchise in accordance with Section 15.01 and state your desire to exercise that right in accordance with Section 15.02, we and you (and your Owners) will execute the form of franchise agreement (which may contain provisions, including royalty fees, materially different from those contained herein) and all ancillary agreements (including, personal guarantees by your Owners and a remodeling agreement on such terms as we determine to be appropriate) which we then customarily use in granting successor franchises for the operation of Restaurants. The successor franchise agreement will be for a successor franchise term of either ten (10) years or twenty (20) years, as you and we may then agree. You must pay us a successor franchise fee due upon signing the successor franchise agreement, depending on the duration of that future agreement's term, in the amount of: (i) one half (1/2), or fifty percent (50%), of the amount of our then current initial franchise fee due for new Restaurants, if your
successor franchise term is for twenty (20) years; or (ii) one-third (1/3), or thirty-three and one-third percent (33.33%), of the amount of our then current initial franchise fee due for new Restaurants, if your successor franchise term is for ten (10) years. In addition, you and your Owners must execute general releases, in form and substance satisfactory to us or as we then explicitly prescribe, of any and all claims against us, and our Affiliates, owners, officers, directors, employees, agents, successors and assigns. Failure by you (and your Owners) to sign such agreements and releases within thirty (30) days after delivery to you shall be deemed an election by you not to acquire a successor franchise for the Franchised Restaurant.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the successor franchise agreement term is either ten or twenty years, depending on the agreement between Checkers and the franchisee.
To acquire a successor franchise, the franchisee must provide written notice to Checkers at least 180 days before the expiration of the current agreement. Checkers will then notify the franchisee of their decision regarding the successor franchise rights within 60 days of receiving the franchisee's notice. However, the franchisee's right to a successor franchise is contingent upon their continued compliance with the existing franchise agreement up to its expiration date.
If the franchisee is eligible and desires to proceed, both parties will execute a new franchise agreement and any associated documents. These documents may include terms, such as royalty fees, that differ significantly from the original agreement. The franchisee will also be required to pay a successor franchise fee upon signing the new agreement. This fee is either one-half (50%) of the current initial franchise fee for new restaurants if the term is twenty years, or one-third (33.33%) of the current initial franchise fee if the term is ten years. Additionally, the franchisee and their owners must sign general releases, satisfactory to Checkers, relinquishing any claims against Checkers and its affiliates.