How many company-operated Checkers restaurants were sold to 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, 9 company-operated restaurants were sold to franchisees during 2023. This information is based on the consolidated financial statements which include data about company-operated and franchisee-operated restaurants. The table provides a breakdown of restaurant counts at the beginning and end of the period, as well as changes due to new openings, acquisitions, sales, and closures.
For a prospective franchisee, this indicates Checkers' willingness to transfer existing company-operated locations to franchisees. Acquiring an existing restaurant can sometimes be less risky than starting a new one from the ground up, as it already has an established customer base and operating history. However, it's important to investigate the performance and condition of any restaurant being considered for purchase.
The FDD also shows that Checkers acquired 4 restaurants from franchisees in 2023. The number of company-operated restaurants decreased from 255 at the beginning of 2023 to 238 at the end of the year. This information provides insight into the dynamics of Checkers' restaurant network and its strategy regarding company-operated versus franchised locations.
Overall, the data suggests that Checkers is actively managing its mix of company-operated and franchised restaurants, and that opportunities may exist for franchisees to acquire existing locations. A potential franchisee should inquire about the reasons for selling company-operated stores and the criteria used to select franchisees for these transactions.