What operational condition must be met for a Checkers franchisee to be eligible to transfer their franchise?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
13.02 Conditions for Approval. If we have not exercised our right of first refusal under Section 13.06, we will not unreasonably withhold our approval of a transfer of the Franchise that meets all of the reasonable restrictions, requirements and conditions we impose on the transfer, the transferor(s) and/or the transferee(s), including the following:
- (a) you have completed development of the Franchised Restaurant and are operating the Franchised Restaurant in accordance with this Agreement;
- (b) you and your Owners and Affiliates are in compliance with the provisions of this Agreement and all other agreements with us or any of our Affiliates;
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, a franchisee must have completed the development of their franchised restaurant and be operating it in accordance with the franchise agreement to be eligible to transfer their franchise. This condition ensures that the restaurant is up and running before a transfer can occur.
In addition to operating the restaurant according to the agreement, the franchisee, their owners, and affiliates must be in compliance with all provisions of the franchise agreement and any other agreements with Checkers or its affiliates. This requirement covers a broad range of potential issues, ensuring that the franchisee is in good standing across all aspects of their relationship with the franchisor.
These conditions are typical in franchising, as franchisors want to ensure that any transfer of ownership maintains the brand's standards and reputation. A prospective Checkers franchisee should carefully review the franchise agreement to fully understand all conditions that must be met to maintain eligibility for a franchise transfer.