What is the process for obtaining the franchisor's consent to change the Operating Partner of a Checkers franchise?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.03 Operating Partner. If you are, or at any time become, a business corporation, partnership, limited liability company or other legal entity, you must designate in Exhibit A as the "Operating Partner" an individual we approve who must: (a) own and control, or have the right to own and control (subject to conditions reasonably acceptable to us) not less than ten percent (10%) of your equity and voting rights; (b) have the authority to make, and bind you and all your Owners to, all operational decisions regarding the Franchised Restaurant; and (c) complete our training program to our satisfaction before engaging in his or her operational duties. You may not change the Operating Partner without our prior written consent.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, if a franchisee is a business entity, they must designate an Operating Partner who meets specific criteria. This individual must be approved by Checkers, own or have the right to control at least 10% of the franchisee's equity and voting rights, have the authority to make operational decisions, and complete Checkers' training program.
The FDD states that a franchisee cannot change the Operating Partner without Checkers' prior written consent. This requirement ensures that the replacement Operating Partner also meets Checkers' standards for experience, training, and financial stake in the franchise. The process for obtaining this written consent is not detailed in this excerpt.
To change an Operating Partner, a franchisee must seek written approval from Checkers. While the specific steps for requesting this change are not outlined, it is reasonable to assume that Checkers would require information about the proposed new Operating Partner to assess their qualifications. This might include their ownership stake, experience, and willingness to complete the required training program. Prospective franchisees should ask Checkers for clarification on the exact procedure for requesting a change of Operating Partner and the criteria used for evaluating potential replacements.