What is the Delivery Administration Fee 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. |
| Order Ahead Program Administration Fee | 2% of the total price charged to a customer that orders certain approved food, beverage and other items (the "Order Ahead Products") from our optional "Order Ahead Program." | Bi-monthly. | Payable only if you are eligible and elect to enter the Order Ahead Program, which allows customers to pre-order the Order Ahead Products for pick-up from Restaurants. See Note 8. |
| Marketing, Advertising, Promotional and Point-of-Purchase ("POP") Materials | Actual costs, which may vary per Restaurant based on merchandising capacity and the materials you request. | Payable monthly. | Advertising materials not prepared by us must be submitted for approval prior to distribution. |
Source: Item 6 — OTHER FEES (FDD pages 21–30)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if a franchisee is eligible and chooses to participate in the Delivery Program, they must pay a Delivery Administration Fee. This fee is 2% of the total price charged to a customer for orders of approved food, beverage, and other items (referred to as "Delivered Products") placed through a third-party delivery service provider (DSP) approved by Checkers. This fee is paid bi-monthly.
This fee covers Checkers' administration of the Delivery Program, where Checkers negotiates the terms and conditions with the DSPs. Franchisees are required to comply with all agreements Checkers negotiates with any DSP. The Delivery Program is optional, so franchisees are not required to participate.
It is important for prospective Checkers franchisees to consider this fee when evaluating the potential costs and benefits of offering delivery services. Franchisees should also factor in any other fees associated with using third-party delivery services, such as commissions or marketing costs charged by the DSPs themselves.