Industry News | February 7, 2001

Checkers Re-Franchises Philadelphia Market

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Checkers Drive-In Restaurants, Inc. (CHKR: NASDAQ) reported today that it has reached agreement to re-franchise the 17 locations it acquired last month to an affiliate of an existing franchisee of Checkers (R), Quality Food Group, Inc., for $2.1 million. No further terms of the agreement were disclosed; however, it is expected that operations will be taken over by Quality Food Group, Inc. within the week.

Dick Sveum, Checkers' (R) Vice President of Franchise Sales commented: "This Market sold much quicker than I anticipated with multiple franchisees expressing an interest in purchasing this market within days of our acquisition. In fact, I've just gotten off the phone with some of our other franchisees that were preparing to make bids on the Market. It has always been our intent to maintain Philadelphia as a franchisee market.''

Ben Laster, President and C.E.O. of Quality Food Group, Inc., commented: "We are extremely excited about our ability to acquire this opportunity to expand our relationship as a franchisee with the Checkers (R) brand. An opportunity like this doesn't come along everyday and this just goes to show how being the 'early bird' still gets you the prize.''

Checkers previously reported it had re-acquired 17 Checkers (R) restaurants in Philadelphia from Great Lakes Restaurant Company II, LLC on January 17, 2001.