What is the deadline for obtaining all necessary permits, licenses, or other regulatory or municipal approvals to open a Checkers restaurant to be eligible for a partial refund of the initial franchise fee?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
The initial franchise fee is fully earned by us on the effective date of the franchise agreement and is non-refundable, except that we may provide you a refund of 50% of the initial franchise fee if: (a) you (i) are unable to obtain a site acceptable to us within the Designated Area for the Franchised Restaurant within 180 days after the effective date of the franchise agreement, or (ii) despite having expended good faith best efforts (as we determine in our sole judgment), have not obtained all necessary permits, licenses, or other regulatory or municipal approvals to be able to open the Franchised Restaurant according to applicable law within 60 days after you sign the proposed lease, sublease, or purchase agreement for the location of the Franchised Restaurant; and (b) you and your owners execute general releases, in form and substance satisfactory to us, of any and all claims against us, and our affiliates, officers, directors, employees, agents, successors and assigns.
Source: Item 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, a franchisee may be eligible for a 50% refund of the initial franchise fee under certain conditions. One of these conditions is related to obtaining the necessary permits and approvals to open the restaurant.
Specifically, to qualify for the partial refund, the franchisee must, despite expending good faith best efforts, fail to obtain all necessary permits, licenses, or other regulatory or municipal approvals to be able to open the Franchised Restaurant according to applicable law within 60 days after signing the proposed lease, sublease, or purchase agreement for the location of the Franchised Restaurant. This means that the franchisee has a limited time frame after securing the location to finalize all regulatory requirements.
It's important to note that even if the franchisee meets this deadline, they must also (a) be unable to obtain a site acceptable to Checkers within 180 days after the effective date of the franchise agreement, and (b) execute general releases of any and all claims against Checkers and its affiliates. Meeting only the permit deadline is not sufficient to guarantee a refund; all conditions must be met. The determination of whether the franchisee has used their best efforts is made at Checkers's sole discretion, which introduces an element of subjectivity and risk for the franchisee.