Does Checkers have any restrictions on assigning the Development Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE OR OTHER AGREEMENT | SUMMARY | |
|---|---|---|---|
| k. | "Transfer" by developer defined | Section 1.04 | Includes transfer of agreement, sale of business and ownership changes. |
| l. | Franchisor's approval of transfer by developer | Sections 7.01 and 7.02 | We have the right to approve all transfers but will not unreasonably withhold approval if conditions satisfied. |
| m. | Conditions for franchisor's approval of transfer | Section 7.02 | You must transfer all of your Restaurants; be in compliance with agreements; have at least one Restaurant open; sign release and non-compete for each transferred restaurant; and do other things we request. Transferee must qualify, sign existing agreement and pay transfer fee; transferee cannot be public company. |
| n. | Franchisor's right of first refusal | Section 7.06 | We can match any offer for your development rights. |
| p. | Death or disability of developer | Section 7.05 | Franchise must be assigned by estate to approved buyer within nine months. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 66–71)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, Checkers has the right to approve all transfers of the Development Agreement, but will not unreasonably withhold approval if certain conditions are satisfied.
These conditions include the developer transferring all of their Restaurants, being in compliance with all agreements, and having at least one Restaurant open. Additionally, the developer must sign a release and non-compete agreement for each transferred restaurant, and fulfill any other requests made by Checkers. The prospective transferee must qualify, sign the existing agreement, and pay a transfer fee. The transferee cannot be a public company.
Checkers also has the right of first refusal, meaning they can match any offer made for the developer's rights. In the event of the developer's death or disability, the franchise must be assigned by the estate to an approved buyer within nine months.