Checkers, owned by private equity firm Wellspring Capital Management, has hired Piper Jaffray and Jefferies to help with the offering, the sources said.
Jefferies and Wellspring declined to comment. Piper Jaffray could not immediately be reached for comment.
An IPO for Checkers comes after Wellspring tried unsuccessfully to sell the Tampa, Florida-based company last year, the sources said.
Checkers operates more than 800 restaurants across the United States under the Checkers and Rally’s names.
The company is hoping to join a host of other restaurant chains that have gone public in the last year, including Noodles & Co, OutbackSteakhouse parent Bloomin’ Brands Inc, Chuy’s Holdings Inc and Del Frisco’s Restaurant Group Inc.
Sandwich maker Potbelly Corp also filed for an IPO in April, and sources previously told Reuters that pizza chain Papa Murphy’s is in the process of speaking to banks about a public float.
Olivia Oran is a reporter for Reuters News in New York
Luisa Beltran is a senior reporter for peHUB