For the Checkers 2025 Growth Incentive, what does it mean to be 'Restaurant Net Positive'?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
You will qualify for a 50% reduced initial franchise fee for your third and subsequent Restaurants if you meet the following criteria: (i) by December 31, 2025, you sign franchise agreements for and, within 18 months of signing the applicable franchise agreement you open to the general public, 3 or more Restaurants that comply with the then-current reimaging requirements; and (ii) you, your owners, or your and their affiliates are Restaurant Net Positive (defined below). "Restaurant Net Positive" means that the total number of Restaurants operated by you, your owners, or your and their affiliates at the time you open each Restaurant is greater than the number of Restaurants operated by you, your owners, or your and their affiliates as of December 30, 2024. In order to receive the benefit of a reduced initial franchise fee for your third and subsequent Restaurants (and other benefits described in Item 6), you must sign our required form of 2025 Growth Incentive Addendum to the Franchise Agreement (attached as Exhibit B-2 to this Franchise Disclosure Document).
Source: Item 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, 'Restaurant Net Positive' is a criterion for franchisees seeking to qualify for the 2025 Growth Incentive. This incentive offers a 50% reduction in the initial franchise fee for the franchisee's third and subsequent restaurants.
To be 'Restaurant Net Positive,' the total number of restaurants operated by the franchisee, their owners, or their affiliates at the time of opening each new restaurant must be greater than the number of restaurants they operated as of December 30, 2024. In simpler terms, the franchisee must have increased the number of restaurants they operate since December 30, 2024, to qualify for the reduced franchise fee for new locations.
For a prospective Checkers franchisee, this means that to take advantage of the 2025 Growth Incentive, they need to ensure their restaurant count is growing. If a franchisee had 5 restaurants on December 30, 2024, they must operate more than 5 restaurants when opening each subsequent location for which they want to claim the incentive. This condition encourages existing franchisees to expand their operations and demonstrates a commitment to the Checkers brand. Franchisees must also sign the 2025 Growth Incentive Addendum to the Franchise Agreement to receive the reduced initial franchise fee.