What are the approximate annual ongoing costs for the hardware that a Checkers franchisee must pay directly to the suppliers after the second year of use?

According to Checkers' 2025 Franchise Disclosure Document, franchisees can expect to pay between $1,100 and $6,000 annually for hardware costs after the second year of use. These costs are paid directly to the suppliers and do not include applicable taxes. This hardware is part of the required Aloha POS system and integrated restaurant management system.

This means that a Checkers franchisee needs to budget for these ongoing hardware expenses in addition to other technology-related costs. These other costs include Xenial support (between $1,400 and $1,600 annually), Aloha software maintenance ($450 annually for 3 terminals plus $90 for each additional terminal), and quarterly fees paid to Checkers or its affiliate (ranging from $190 to $370). There is also a potential quarterly fee of approximately $204 if the franchisee uses Aloha's Connected Payment service.

The wide range in hardware costs ($1,100 to $6,000) suggests that the specific hardware configuration at the franchise restaurant significantly impacts the annual expense. Franchisees should clarify with Checkers what factors determine where their restaurant will fall within this range and what options exist to potentially minimize these costs. It's also important to note that Checkers may require franchisees to upgrade or update their computer systems from time to time, which could lead to additional, unforeseen expenses.