What is the range of interest rates for Checkers' financing obligations relating to sales of restaurants?

According to Checkers's 2025 Franchise Disclosure Document, the interest rates for financing obligations relating to sales of restaurants range from 3.20% to 7.06%. These obligations mature at various dates through October 1, 2039. As of December 30, 2024, the total financing obligations amounted to $7,850,000, which decreased to $7,783,000 after deducting current maturities of $67,000.

For a prospective Checkers franchisee, this information is relevant if they are considering purchasing existing restaurants from Checkers and financing a portion of the purchase. The interest rate will directly impact the cost of financing and the overall profitability of the acquired restaurants. Understanding the maturity dates is also crucial for financial planning, as it dictates the repayment schedule.

It's important to note that these financing obligations are related to Checkers' role as the seller of the restaurants. The availability and terms of financing may vary depending on the franchisee's creditworthiness, the specific restaurants being purchased, and the prevailing market conditions at the time of the transaction. Prospective franchisees should carefully evaluate the terms of any financing offered by Checkers and compare them to other available financing options to ensure they are receiving the most favorable terms.

Franchisees should also consult with a financial advisor to assess the long-term financial implications of these financing obligations and how they fit into their overall investment strategy. Understanding these details is essential for making informed decisions about purchasing and operating Checkers restaurants.