What was the total number of Checkers outlets that ceased operations for other reasons across all states in 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
A number of these transactions involved a multi-unit franchise selling more than 1 outlet to the same buyer in the same transaction.
Table No. 3 Status of Franchised Outlets For years 2022 to 2024
| Col. 1 State | Col. 2 Year | Col. 3 Outlets at Start of Year | Col. 4 Outlets Opened | Col. 5 Termina- tions | Col. 6 Non- Renewals | Col. 7 Reacquired by Franchisor | Col. 8 Ceased Opera- tions Other Reasons | Col.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 78–91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, a total of 35 Checkers restaurants ceased operations for reasons other than terminations, non-renewals, or reacquisition by the franchisor across all states in 2024. This figure is part of the system-wide outlet summary provided in Item 20 of the FDD, which details the changes in the number of outlets over the past three years.
For a prospective franchisee, this information is crucial in understanding the stability and potential risks associated with the franchise system. The 'Ceased Operations Other Reasons' category can include closures due to various factors such as poor performance, location issues, or other unforeseen circumstances. A significant number in this category could indicate underlying challenges within the franchise system that are not immediately apparent from termination or non-renewal data alone.
It's also important to note that the FDD includes a footnote indicating that in 2023, 29 restaurants were previously considered temporarily closed but are now permanently closed. While this specific situation does not apply to the 2024 data, it highlights the importance of understanding how Checkers classifies and reports closures. Prospective franchisees should inquire about the specific reasons for closures in this category to gain a deeper understanding of the factors affecting restaurant viability.
Overall, while 35 closures for 'other reasons' in 2024 may not seem alarming on its own, a prospective franchisee should investigate further to determine the specific causes and assess whether these issues could impact their potential investment. Comparing this number to previous years and industry averages can also provide valuable context.