What conditions must a Checkers franchisee meet to qualify for the $10,000 reduction in the initial franchise fee?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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Existing Franchisee Incentive
If you are an existing franchisee of at least two Checkers Restaurants or Rally's Restaurants and you are in good standing and full compliance with all current agreements with us or our affiliates, and you sign a Franchise Agreement for, and open to our satisfaction, a new Franchised Restaurant within 18 months of signing the Franchise Agreement, then we offer a $10,000 reduction to the amount of our standard initial franchise fee (currently $30,000) payable for the new Franchised Restaurant. In order to receive the benefit of a reduced initial franchise fee of $20,
Source: Item 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, an existing franchisee can receive a $10,000 reduction in the initial franchise fee under specific conditions. This incentive is designed to encourage growth among current franchisees who are in good standing with the company. The standard initial franchise fee is $30,000, so with the reduction, the fee would be $20,000.
To qualify for this $10,000 reduction, the franchisee must already own at least two Checkers or Rally's restaurants. Additionally, they must be in good standing and full compliance with all current agreements with Checkers or its affiliates. The franchisee must also sign a Franchise Agreement for a new Checkers restaurant and open it to Checkers' satisfaction within 18 months of signing the Franchise Agreement.
To formally receive the reduced initial franchise fee, the franchisee must sign the required Existing Franchisee Incentive Addendum to the Franchise Agreement, which is attached as Exhibit B-1 to the Franchise Disclosure Document. This addendum likely outlines the specific terms and conditions of the incentive in more detail, ensuring both the franchisee and Checkers are aligned on the requirements and benefits.