How many franchisee-operated Checkers restaurants were new in the period ending January 3, 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 | 266 | 264 | |||||||
| New | 2 | - | 3 | |||||||
| Acquired from franchisee | 4 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, there were 26 new franchisee-operated restaurants during the period ending January 3, 2022. This information is based on the consolidated financial statements which include data about both company-operated and franchisee-operated restaurants. The 'New' row specifically tracks the number of restaurants that opened under each category during the specified periods.
For a prospective franchisee, this indicates the rate at which new franchised locations were added to the Checkers system during that year. This number can be an indicator of the brand's growth and the attractiveness of the franchise opportunity to other potential franchisees. A higher number of new openings might suggest a strong interest in the franchise, while a lower number could raise questions about the brand's expansion strategy or market saturation.
It's important to note that this number represents the gross number of new franchisee-operated restaurants. To get a full picture of the system's growth, a prospective franchisee should also consider the number of restaurants that closed during the same period. This information is also available in the table, showing that 35 franchisee-operated restaurants closed during the same period. Analyzing both new openings and closures provides a more comprehensive understanding of the net change in the number of franchised locations.
Overall, while the addition of 26 new franchisee-operated Checkers restaurants indicates growth, the closure of 35 restaurants during the same period suggests a net decrease in the number of franchised locations. Potential franchisees should investigate the reasons behind these closures to assess the health and stability of the franchise system.