How many new franchisee-operated Checkers restaurants were added 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) | (5) | (1) | |||||||
| End of period | 238 | 255 | 266 | |||||||
| Franchisee-operated restaurants | · ' | |||||||||
| Beginning of period | 585 | 585 | 594 | |||||||
| New | 22 | 28 | 26 | |||||||
| Acquired from the Company | 9 | _ | ||||||||
| Sold to the Company | (3) | - | ||||||||
| Closed | (60) | (34) | (35) | |||||||
| End of period | 547 | 585 | 585 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, there were 22 new franchisee-operated restaurants added during 2023. This information is derived from the consolidated financial statements which outline changes in both company-operated and franchisee-operated restaurant counts over several years. The data provides a clear picture of the growth and changes within the Checkers franchise system.
For a prospective franchisee, this figure indicates the level of expansion within the franchise network. A higher number of new franchisee-operated restaurants could suggest a healthy and growing system, which may be an attractive factor for potential investors. However, it's important to consider this number in conjunction with other factors such as closures and transfers to get a complete understanding of the network's dynamics.
It is also useful to compare the number of new franchisee-operated restaurants with the number of company-operated restaurants. In 2023, only 2 new company-operated restaurants were added, while 22 new franchisee-operated restaurants were added. This could indicate that Checkers is focusing on expanding through franchising rather than through corporate-owned stores. This information is valuable for prospective franchisees as it provides insight into the company's growth strategy and its commitment to supporting its franchisees.
Finally, the prospective franchisee should also consider the number of closures. In 2023, 60 franchisee-operated restaurants were closed. This is a significant number and should be investigated further. The prospective franchisee should ask Checkers about the reasons for these closures and what steps the company is taking to prevent future closures.