What is the Extension Fee for Checkers, and when is it due?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
assistance you request. |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (See Note 1) |
|---|---|---|---|
| Fees to Evaluate and Approve Alternative Suppliers | Currently, only out-of-pocket expenses. | Upon receipt of our bill. | We may impose reasonable inspections and supervision fees to cover our costs in evaluating alternative approved brands or suppliers you suggest. |
| Extension Fee | $5,000 | As incurred. | You will pay this amount if we grant you a one-time extension to either locate, secure or develop a site acceptable to us for the Franchised Restaurant. |
| Rent | Varies by site being sublet | Monthly | You will only pay this amount if we sublease the Premises of your Franchised Restaurant to you. If we sublease the Premises, you may pay rent directly to the landlord or to us. If you pay rent to us, we may charge an amount that is higher than the rent due under the underlying lease. |
| Audit | Cost of audit | Upon receipt of our bill. | Payable only if you fail to furnish required information or if we find an understatement of Net Sales greater than 2%. |
| Insurance | Varies, cost of coverage obtained | As incurred | If you fail to obtain the required insurance coverage for the Franchised Restaurant, we may obtain such coverage at your expense. |
| Maintenance Costs | Varies, actual costs | As incurred | If you fail or refuse to maintain the Franchised Restaurant as required, we have |
Source: Item 6 — OTHER FEES (FDD pages 21–30)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, an Extension Fee of $5,000 is required if Checkers grants a franchisee a one-time extension to either locate, secure, or develop a site acceptable to them for the Franchised Restaurant. This fee is due as incurred.
This means that if a Checkers franchisee needs more time to find a suitable location or to complete the development of their restaurant site, they can request an extension from Checkers. If Checkers approves this extension, the franchisee will have to pay Checkers a $5,000 Extension Fee at the time the extension is granted.
It's important for prospective Checkers franchisees to factor this potential cost into their budget when planning their restaurant launch. Delays in site selection or development can happen for various reasons, and this fee could apply if an extension is needed. Understanding the conditions under which this fee is incurred allows franchisees to be prepared for such a situation and to manage their project timelines effectively.