What is the role of 'good character and reputation' in the Checkers franchise transfer approval process?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
corporation, partnership, limited liability company or other legal entity, your Owners. Accordingly, neither you nor any of your Owners may transfer the Franchise without our approval and without complying with all of the provisions of Section 13. Any transfer without such approval or compliance constitutes a breach of this Agreement and is void and of no force or effect.
- 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 a
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the good character and reputation of a potential transferee is a key factor in the franchise transfer approval process. Specifically, if a Checkers franchisee wishes to transfer their franchise to another party, Checkers will assess the proposed transferee's character and reputation.
For Checkers to approve a franchise transfer, the proposed transferee (or their owners, if the transferee is a legal entity) must be individuals acting in their individual capacities who are of good character and reputation. They also need to demonstrate sufficient business experience, aptitude, and financial resources to successfully operate the franchised restaurant. This requirement ensures that any new franchisee taking over an existing Checkers location meets the brand's standards for integrity and competence.
This condition is one of several that Checkers may impose on the transfer, the transferor, and/or the transferee. Other conditions include the franchisee operating the restaurant according to the agreement, compliance with all agreements with Checkers and its affiliates, completion of the initial training program, and agreement to be bound by the current franchise agreement. These stipulations collectively aim to maintain the quality and consistency of the Checkers brand across all franchise locations, protecting the overall network and brand reputation.