What is the deadline for a Checkers franchisee to open a new franchised restaurant after signing the Franchise Agreement to qualify for the existing franchisee incentive?
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's 2025 Franchise Disclosure Document, existing franchisees who meet certain criteria can receive a reduction in the initial franchise fee. To qualify for the Existing Franchisee Incentive, a franchisee must already operate at least two Checkers or Rally's restaurants and be in good standing with the company.
Specifically, to receive a $10,000 reduction in the standard initial franchise fee (bringing it down to $20,000), the existing franchisee must sign a Franchise Agreement for a new Checkers restaurant and open it to Checkers's satisfaction. This opening must occur within 18 months of signing the Franchise Agreement.
This incentive is designed to encourage existing, successful franchisees to expand their operations. To formalize this agreement, the franchisee must also sign the Existing Franchisee Incentive Addendum, which is attached as Exhibit B-1 to the Franchise Disclosure Document.