What is the deadline for a Checkers franchisee to open their restaurant to qualify for the Existing Franchisee Incentive?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
--|----|-----|---------|----------|-------------------------------------------------------------------------------------| | | | | | | | | | | RESTAURANTS, INC., a Delaware corporation ("Franchisor," "we," "our," or "us"), and | | | | | | | | | | | ("you" or "your" or "Franchisee"). We and you may each | | | | | be referred to as a "Party," or collectively, the "Parties." | | | | | | |
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Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, an existing franchisee can qualify for the Existing Franchisee Incentive, which reduces the initial franchise fee by $10,000, if they open their Checkers or Rally's restaurant within one year of signing the Franchise Agreement.
To qualify for this incentive, the franchisee must be in good standing with Checkers, fully compliant with all agreements, and agree to open the franchised restaurant within the specified timeframe. Meeting these qualifications allows the franchisee to benefit from the reduced initial franchise fee.
However, if the franchisee fails to meet the condition of opening the restaurant within one year of signing the Franchise Agreement, they will be required to pay Checkers the amount of the Initial Fee Reduction. This condition underscores the importance of adhering to the agreed-upon development timeline to retain the incentive.