Under what circumstances might Checkers retain franchise or business brokers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
you open.
We may offer for sale, and sell as franchises, some company-owned Checkers Restaurants or Rally's Restaurants in certain geographic areas. In connection with these franchise transactions, we may retain franchise or business brokers to negotiate with a prospective franchisee to reach mutually acceptable terms of a separate sale of assets agreement and any sale, lease or sublease of the real estate. In addition, a Franchise Agreement for the purchased restaurant(s) will have to be signed (which, in addition to the normal initial franchise fee, will require payment of a $10,000 asset transfer fee – See Item 5) and, possibly, also a Development Agreement for the further development of Checkers Restaurants or Rally's Restaurants in the geographical area where the purchased restaurant(s) is/are located. Depending on the circumstances, we also may vary the financial and other terms of our Franchise Agreement and Development Agreement in connection with the sale of company-owned Checkers Restaurants or Rally's Re
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–14)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers may retain franchise or business brokers when selling company-owned Checkers or Rally's restaurants as franchises. In these instances, the brokers would negotiate with prospective franchisees to reach mutually agreeable terms for a sale of assets agreement, as well as any real estate sale, lease, or sublease agreements.
If a prospective franchisee purchases a company-owned restaurant, they will need to sign a Franchise Agreement and potentially a Development Agreement for further development in the area. In addition to the standard initial franchise fee, a $10,000 asset transfer fee will be required. Checkers also retains the option to modify the financial and other terms of the Franchise Agreement and Development Agreement based on the specific circumstances of the sale.
This practice is fairly common in the franchise industry, as franchisors sometimes divest company-owned locations to focus on franchising or to optimize their corporate portfolio. Using brokers can help streamline the process of finding qualified franchisees and negotiating the terms of the sale. For a prospective franchisee, this means that the initial contact and negotiation process might be handled by a broker rather than directly with Checkers' corporate team.