How many company-operated Checkers restaurants were acquired from franchisees in 2023?
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, the company acquired 4 restaurants from franchisees in 2023. This detail is part of the financial overview provided in the FDD, specifically within the section detailing the changes in company-operated restaurants during the reported periods. The document also specifies that in 2022, Checkers acquired 3 restaurants from franchisees.
This information is relevant for prospective franchisees as it provides insight into Checkers's strategy regarding restaurant ownership. The acquisition of franchised locations by the company could indicate various factors, such as the performance of those specific locations, strategic decisions to consolidate operations, or the financial health of the franchisees selling their restaurants. Understanding these trends can help a potential franchisee assess the stability and growth patterns within the Checkers franchise system.
It's important to note that while the FDD provides this historical data, it doesn't offer explanations for why these acquisitions occurred. A prospective franchisee should consider asking Checkers's franchisor for more context around these transactions to gain a clearer understanding of the company's long-term plans and how they might impact individual franchisees. This inquiry could reveal valuable information about the support and opportunities available to franchisees within the Checkers system.