How many days after Checkers exercises its option to purchase the Purchased Assets will the closing occur?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) If we (or our assignee) exercise our option to purchase, fifty percent (50%) of the purchase price for the Purchased Assets will be paid in cash at the closing, which will occur at the place, time and date we designate, but not later than sixty (60) days after the exercise of our option to purchase the Purchased Assets. At the closing, we (or our assignee) will be entitled to all warranties, title insurance policies and other closing documents and post-closing indemnifications as we reasonably require, including: (a) instruments transferring good and merchantable title to the Purchased Assets, free and clear of all liens, encumbrances, and liabilities, to us or our designee, with all sales and other transfer taxes paid by you; and (b) an assignment of all leases of personal property and real estate used in the operation of the Franchised Restaurant, including land, building and/or equipment (or if an assignment is prohibited, a sublease to us or our designee for the full remaining term and on the same terms and conditions as your lease, including renewal and/or purchase options), provided, however, that if any of your Owners or Affiliates directly or indirectly owns the land and/or building of the Franchised Restaurant, then you will, at our option, cause such Owner or Affiliate to grant to us (or our assignee) a lease at reasonable and customary rental rates and other terms prevailing in the community where the Franchised Restaurant is located. Any dispute concerning the rental rates and terms of such lease shall be resolved by the Appraiser. Twenty-five percent (25%) of the purchase price (plus accrued and unpaid interest on the unpaid balance, at the Prime Rate, as defined below, from and after the closing date) shall be
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if Checkers exercises its option to purchase the Purchased Assets, the closing will occur no later than sixty (60) days after the exercise of their option to purchase. At the closing, Checkers will pay fifty percent (50%) of the purchase price in cash for the Purchased Assets.
Checkers will also be entitled to all warranties, title insurance policies, and other closing documents and post-closing indemnifications as they reasonably require. This includes instruments transferring good and merchantable title to the Purchased Assets, free and clear of all liens, encumbrances, and liabilities, with all sales and other transfer taxes paid by the franchisee. Additionally, Checkers will receive an assignment of all leases of personal property and real estate used in the operation of the Franchised Restaurant.
Remaining payments for the Purchased Assets are structured as follows: twenty-five percent (25%) of the purchase price, along with accrued and unpaid interest at the Prime Rate, is payable on the first anniversary of the closing date. The final twenty-five percent (25%), plus accrued and unpaid interest at the Prime Rate, is due on the second anniversary of the closing date. The Prime Rate is defined as the published prime rate as of the closing date of The Chase Manhattan Bank or any other national bank Checkers selects.