How many franchisee-operated Checkers restaurants were closed during the period ending January 1, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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) | |||||||
| End of period | 238 | 255 | 266 | |||||||
| Franchisee-operated restaurants | · ' | |||||||||
| Beginning of period | 585 | 585 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, 60 franchisee-operated restaurants were closed during the period ending January 1, 2024. This is a notable figure for prospective franchisees to consider, as closures can indicate potential challenges within the franchise system.
For comparison, the FDD also indicates that 34 franchisee-operated restaurants were closed in the previous year (ending January 2, 2023) and 35 the year before that (ending January 3, 2022). The increase to 60 closures in the most recent period could signal emerging issues that prospective franchisees should investigate further.
Understanding the reasons behind these closures is crucial. Potential franchisees should ask Checkers about the primary causes of these closures, such as underperformance, lease issues, or other factors. Additionally, it would be prudent to inquire about any support or strategies Checkers has in place to help franchisees avoid closure and maintain profitability.
Examining closure rates over multiple years provides a more comprehensive understanding of the stability and risks associated with the franchise. A consistent pattern of closures may warrant more caution, while fluctuations could be tied to specific economic conditions or strategic changes within the Checkers system.