What is the transfer fee for a Checkers franchise if the proposed transferee is a then-current franchisee?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ture, equipment, signs and supplies in accordance with our then current requirements and specifications for Restaurants within the time period we specify following the effective date of the transfer (we will advise the transferee before the effective date of the transfer of the specific actions that it must take and the time period within which such actions must be taken);
- (i) you must ensure that we receive, before we will approve any proposed transferee to begin conducting business activities at the Franchised Restaurant as its authorized operator, a transfer fee equal to Twenty Thousand Dollars ($20,000) (or, if the proposed transferee is a then-current franchisee of a Restaurant, a transfer fee equal to Ten Thousand Dollars ($10,000)), provided, however, if this Agreement is being transferred as part of a transaction involving franchise agreements for multiple Restaurants and the franchise agreement for each Restaurant will be transferred on the same day, notwithstanding anything to the contrary in any other franch
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the transfer fee for a franchise agreement is dependent on whether the proposed transferee is a new or existing franchisee. If the proposed transferee is a then-current Checkers franchisee, the transfer fee is $10,000.
However, if the transfer involves multiple restaurants being transferred on the same day, the transfer fee structure changes slightly. For the first restaurant, the fee remains $20,000 for a new franchisee or $10,000 for a current franchisee. For each additional restaurant included in the transfer, an additional $5,000 is added to the transfer fee.
Thus, a current Checkers franchisee acquiring an additional franchise would typically pay a $10,000 transfer fee. If multiple restaurants are involved in the transaction, the fee could increase by $5,000 for each additional restaurant beyond the first. This fee is in place to compensate Checkers for the administrative and legal work involved in approving the transfer and ensuring the new franchisee meets their standards.