When is the development fee considered earned by Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
a judgment, a corporate, limited liability company or partnership dissolution or otherwise by operation of law; or (4) any transfer by gift, declaration of trust, transfer in trust, revocation of trust, trustee succession, trust termination, discretionary or mandatory trust distribution, occurrence of any event (e.g., death of a person) that affects or ripens the rights of contingent beneficiaries, exercise of a power of appointment, exercise of a withdrawal right, adjudication of you or any Owner as legally disabled, or upon or after your death or the death of any of your Owners by will, disclaimer or the laws of intestate succession or otherwise.
2. DEVELOPMENT RIGHTS.
2.01 Term and Development Fee. Unless sooner terminated in accordance with Section 8, the term of this Agreement (the "Term") starts on the Effective Date and expires on the expiration date set forth in Exhibit A. You have no right to renew or extend your rights under this Agreement. At the time you sign this Agreement, you must pay us a development fee in the amount set forth in Exhibit A. The development fee is non-refundable and shall be deemed earned when paid.
2.02 Development Rights.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the development fee is considered earned when paid. The development fee is non-refundable under any circumstances. For each Franchise Agreement that the franchisee enters into in accordance with the development schedule, Checkers will apply $10,000 of the development fee against the initial franchise fee due under the Franchise Agreement until the development fee is applied in full.
For an area development agreement, the development fee is paid at the time of signing the agreement and is also considered earned when paid and is non-refundable.
It's important to note that Checkers states that they have no obligation to refund any portion of the development fee upon termination of the agreement, except in specific cases of termination by Checkers due to certain adverse legislative or regulatory changes.