What is the condition to receive a 50% reduction of the initial franchise fee for the third and subsequent Checkers restaurants opened?

According to Checkers' 2025 Franchise Disclosure Document, a franchisee can receive a 50% reduction on the initial franchise fee for the third and subsequent restaurants they open. This incentive is conditional and requires meeting specific criteria.

To qualify for the reduced initial franchise fee, the franchisee must first meet the conditions outlined in section 3(a) of the franchise agreement. These conditions include opening the franchised restaurant to the general public within 18 months of signing the Franchise Agreement, ensuring the restaurant complies with the current reimaging requirements, and maintaining a "Restaurant Net Positive" status at the time the franchised restaurant opens. 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 the Franchised Restaurant is greater than the number of Restaurants operated by you, your owners, or your and their affiliates as of December 30, 2024.

Furthermore, to get the 50% reduction of the initial franchise fee for the third and subsequent restaurants, the franchisee must open three or more restaurants that comply with the then-current reimaging requirements to the general public within 18 months of signing the applicable franchise agreement by December 31, 2026.

It's important to note that failure to meet these conditions at any point during the term of the agreement will require the franchisee to pay back the amount of the initial fee reduction. This condition ensures that the incentive is tied to actual performance and compliance with Checkers' standards.