Under what condition might Checkersrallys retain franchise or business brokers?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys may retain franchise or business brokers when offering for sale some company-owned Checkers or Rally's Restaurants in certain geographic areas. These brokers would be used to negotiate with prospective franchisees to reach mutually acceptable terms for the sale of assets agreement, as well as any sale, lease, or sublease of the real estate involved.
In addition to the asset sale, the prospective franchisee will have to sign a Franchise Agreement and possibly a Development Agreement for further development in the area. The Franchise Agreement will require payment of the normal initial franchise fee, as well as a $10,000 asset transfer fee.
Depending on the specific circumstances of the sale, Checkersrallys may also vary the financial and other terms of its standard Franchise Agreement and Development Agreement. This suggests that the terms are negotiable to some extent when purchasing an existing company-owned restaurant, which could be a benefit to the franchisee.