What is the definition of 'Existing Franchisee Incentive' in the Checkers addendum?
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." | | | | | | |
R E C I T A L S
WHEREAS, Franchisor has implemented an incentive program available to qualified existing franchisees of "Checkers" or "Rally's" restaurants under which the Initial Franchise F
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the 'Existing Franchisee Incentive' is defined within the recitals of the Existing Franchisee Incentive Addendum. This incentive program is available to qualified existing franchisees of either "Checkers" or "Rally's" restaurants. Under this program, Checkers reduces the Initial Franchise Fee by $10,000, provided the franchisee opens their new restaurant within one year of signing the Franchise Agreement.
To qualify for this incentive, a franchisee must already operate at least two "Checkers" or "Rally's" restaurants under separate franchise agreements with Checkers. The franchisee must also be in good standing with Checkers, fully compliant with all existing agreements, and commit to opening the new franchised restaurant within one year of signing the franchise agreement. This addendum modifies the standard Franchise Agreement, and in case of conflicts, the addendum's terms prevail.
The Existing Franchisee Incentive Addendum also stipulates that franchisees do not receive any territorial protection or exclusivity when operating at a Non-Traditional Site. Checkers retains full rights regarding the brand, system, and sale of similar products and services. The addendum constitutes the entire agreement regarding its subject matter and can only be modified in writing, properly executed by all parties involved.
This incentive is designed to encourage existing franchisees to expand their operations by opening additional Checkers or Rally's locations. By reducing the initial franchise fee, Checkers lowers the financial barrier for experienced franchisees, incentivizing them to grow their business with the brand. However, franchisees need to be aware of the conditions, such as the one-year opening deadline and the lack of territorial protection for Non-Traditional Sites, to ensure they can meet the requirements and maximize the benefits of the incentive.