Checkers Drive-In Restaurants, Inc. (Nasdaq: CHKR) announced March 30, 2000 that it has sold 62 Checkers restaurants in the Mobile, Alabama, West Palm Beach and Orlando, Florida, market areas to Titan Holdings, LLC for $10.25 million. Titan Holdings, LLC will operate the newly acquired Checkers restaurants as a franchisee and pay ongoing royalties based on sales at the restaurants. Checkers Drive-In Restaurants intends to use the net proceeds from this transaction to further reduce existing debt.
Titan Holdings has entered into a development agreement in conjunction with the purchase pursuant to which it has committed to adding 29 new Checkers locations over the next five years.
Daniel J. Dorsch, president and chief executive officer of Checkers stated, “We are moving very swiftly to sell restaurants and sign new development agreements. We are selling company locations to generate funds which will further pay down debt.” Dorsch continued, “We have now sold a total of 135 restaurants to franchisees and entered into new development agreements for 76 additional stores. We expect to complete additional transactions very shortly.”
Checkers Drive-In Restaurants is moving from a 50 percent corporate/50 percent franchise store mix to a 25 percent corporate/75 percent franchise store mix. Checkers Drive-In Restaurants has just completed their first franchise convention in five years with record numbers of franchisees in attendance. Checkers Drive-In Restaurants merged with Rally’s Hamburgers, Inc. in 1999 to create the largest double drive-thru system in the United States.
Checkers Drive-In Restaurants, Inc. and its franchisees own approximately 443 Checkers operating primarily in the Southeastern United States and approximately 464 Rally’s operating primarily in the Midwestern United States.