Under what condition can a Checkers franchisee change their Operating Partner?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.03 Operating Partner. If you are, or at any time become, a business corporation, partnership, limited liability company or other legal entity, you must designate in Exhibit A as the "Operating Partner" an individual we approve who must: (a) own and control, or have the right to own and control (subject to conditions reasonably acceptable to us) not less than ten percent (10%) of your equity and voting rights; (b) have the authority to make, and bind you and all your Owners to, all operational decisions regarding the Franchised Restaurant; and (c) complete our training program to our satisfaction before engaging in his or her operational duties. You may not change the Operating Partner without our prior written consent.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, a franchisee who is a business entity (corporation, partnership, LLC, etc.) must designate an Operating Partner. This Operating Partner must be an individual approved by Checkers. The Operating Partner must own or have the right to control at least 10% of the franchisee's equity and voting rights, have the authority to make operational decisions for the restaurant, and complete Checkers's training program.
The FDD states that a Checkers franchisee may not change their Operating Partner without prior written consent from Checkers. This requirement ensures that the individual in charge of the restaurant's daily operations meets Checkers's standards and maintains a vested interest in the business.
For a prospective Checkers franchisee, this means that selecting and maintaining an approved Operating Partner is crucial. Any desired change requires Checkers's approval, giving Checkers significant control over the restaurant's management. This provision aims to protect the Checkers brand and ensure consistent operational standards across all franchised locations.