What is the effect of the Existing Franchisee Incentive Addendum on the Initial Franchise Fee for Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisor has implemented an incentive program available to qualified existing franchisees of "Checkers" or "Rally's" restaurants under which the Initial Franchise Fee due under Franchisor's current form of franchise agreement is reduced by $10,000 if the franchisee opens its Restaurant within one (1) year of signing the Franchise Agreement (the "Existing Franchisee Incentive" or "Incentive");
WHEREAS, Franchisee is an existing franchisee under separate franchise agreements with Franchisor for the operation of at least two (2) "Checkers" or "Rally's" restaurants;
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the Existing Franchisee Incentive reduces the initial franchise fee by $10,000. This incentive is available to qualified existing franchisees of Checkers or Rally's restaurants. To qualify, the franchisee must open their new restaurant within one year of signing the Franchise Agreement.
To be eligible for the Existing Franchisee Incentive, the franchisee must already operate at least two Checkers or Rally's restaurants under separate franchise agreements with Checkers. They also need to be in good standing with Checkers, complying with all current agreements. This incentive is designed to encourage existing franchisees to expand their operations.
This addendum modifies the original Franchise Agreement, and in case of conflicts, the addendum takes precedence. If a franchisee requests a transfer before opening the restaurant or breaches the qualification criteria, they may be required to pay back the reduced initial franchise fee. This ensures that the incentive is used as intended, to support the growth of committed franchisees.