How many company-operated Checkers restaurants were sold to a franchisee during the period ending January 1, 2024?
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) | (5) | (1) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, 91 company-operated restaurants were sold to a franchisee during the period ending January 1, 2024. This information is based on the company-operated restaurants' financial data provided in the FDD. This indicates a significant transfer of ownership from the company to franchisees during this period.
For a prospective franchisee, this figure highlights Checkers' strategy regarding company-operated versus franchised locations. A high number of company-operated restaurants being sold to franchisees could suggest a focus on expanding the franchise network. It may also reflect a strategic decision to shift capital from direct operations to franchise support and development.
It is important for potential franchisees to understand the reasons behind these transactions. They should inquire about the performance history of these restaurants, any specific terms or conditions associated with the sales, and the level of support Checkers provides to new franchisees taking over existing locations. Understanding these details will help a franchisee assess the opportunities and challenges associated with acquiring an existing Checkers restaurant versus opening a new one.