When is the Delivery Administration Fee due for a Checkers franchise?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE Local Advertising Fee (see Notes 5 and 6) | AMOUNT The difference between the current NPF contribution rate and 4.5% of your Net Sales. | DUE DATE Must be spent on advertising and promotion during each of your fiscal quarters. | REMARKS (See Note 1) If your Franchised Restaurant is located in a geographical area where we have not established an advertising cooperative, then, we may require you contribute to an advertising purchasing collective that we establish and control. |
|---|---|---|---|
| Delivery Administration Fee | 2% of the total price charged to a customer that orders certain approved food, beverage and other items ("Delivered Products") from a third-party delivery service provider approved by us (each a "DSP"). | Bi-monthly. | Payable only if you are eligible to provide delivery services, elect to provide delivery and enter into the delivery services participation agreement (the "Delivery Program"). See Note 7. |
Source: Item 6 — OTHER FEES (FDD pages 21–30)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the Delivery Administration Fee is due bi-monthly. This fee is 2% of the total price charged to a customer who orders approved food, beverage, and other items, referred to as "Delivered Products," through a third-party delivery service provider (DSP) approved by Checkers.
This fee is only applicable if a franchisee is eligible to provide delivery services, elects to do so, and enters into the delivery services participation agreement, known as the "Delivery Program." Checkers negotiates the terms with DSPs, and franchisees must comply with all agreements Checkers negotiates with any DSP.
In practical terms, if a Checkers franchisee chooses to participate in the Delivery Program, they will need to remit 2% of all delivery order revenue to Checkers every two months. This fee covers Checkers' administration of the delivery program and their negotiations with the DSPs. Franchisees should factor this ongoing cost into their financial projections if they plan to offer delivery services.