How many franchisee-operated Checkers restaurants were closed during 2022?
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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, 35 franchisee-operated restaurants were closed during the fiscal year 2022. This figure is part of a broader table tracking the changes in both company-operated and franchisee-operated restaurant counts over several years. The table provides a year-over-year view of restaurant openings, closures, acquisitions, and sales, offering insight into the stability and growth of the Checkers franchise system.
For a prospective franchisee, this closure rate is an important factor to consider. While closures can occur for various reasons, a high number may indicate underlying issues within the franchise system, such as poor unit economics, lack of support from the franchisor, or market saturation. It is essential to investigate the reasons behind these closures to assess the potential risks and opportunities associated with investing in a Checkers franchise.
In comparison, the table also shows that 26 new franchisee-operated restaurants opened in 2022. Comparing the number of closures to new openings can provide a net growth or decline picture. A net positive number suggests growth, while a negative number indicates contraction. For Checkers, understanding these trends is crucial for evaluating the overall health and attractiveness of the franchise opportunity.
It is also worth noting that the company-operated restaurants saw only one closure in 2022, while 35 franchisee-operated restaurants closed. This difference could suggest varying levels of operational efficiency or different challenges faced by company-operated versus franchisee-operated locations. Further due diligence, including speaking with current and former franchisees, is recommended to gain a comprehensive understanding of the factors influencing restaurant performance and closures within the Checkers system.