How many company-operated Checkersrallys restaurants were acquired from franchisees during the period ending January 2, 2023?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| For the Periods Ended | |||||||
|---|---|---|---|---|---|---|---|
| • | January 1, 2024 (Successor) | January 2, 2023 (Predecess or) | January 3, 2022 (Predecessor) | ||||
| Company-operated restaurants | |||||||
| Beginning of period | 255 | 266 | 264 | ||||
| New | 2 | ₩); | 3 | ||||
| Acquired from franchisee | 環形 | 3 | ( ) | ||||
| Sold to franchisee | 90 | (9) | = | ||||
| Closed | (19) | (5) | (1) | ||||
| End of period | 238 | 255 | 266 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, during the period ending January 2, 2023, Checkersrallys acquired 3 company-operated restaurants from franchisees. This information is based on the performance of company-operated restaurants during that period. This acquisition activity is part of the overall changes in the number of company-operated restaurants, which also includes new restaurants, sales to franchisees, and closures.
For a prospective franchisee, this indicates that Checkersrallys does occasionally buy back restaurants from its franchisees. This could be due to various reasons such as franchisee underperformance, strategic realignment, or the franchisee's desire to exit the business. Knowing that Checkersrallys has acquired restaurants from franchisees in the past might provide some reassurance to potential franchisees, as it suggests there could be an exit strategy available if needed.
However, it is important to note that the decision to acquire a restaurant from a franchisee is at the discretion of Checkersrallys and is not guaranteed. A franchisee should not rely on this as a primary exit strategy but rather consider it as a potential option. It would be prudent for a prospective franchisee to inquire about the conditions under which Checkersrallys might consider acquiring a restaurant, as well as the valuation methods used in such transactions, to fully understand the possibilities and limitations.