Does the Checkers FDD include an exhibit labeled 'Development Agreement'?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT A – Development Obligations
CHECKERS DRIVE-IN RESTAURANTS, INC.
DEVELOPMENT AGREEMENT
This Development Agreement ("Agreement") is made and entered into by and between CHECKERS DRIVE-IN RESTAURANTS, INC. ("Franchisor", "we" or "us"), a Delaware corporation, with its principal place of business located at 4300 West Cypress Street, Suite 600, Tampa, Florida 33607 and We also will defer collection of all initial fees owed under the Development Agreement until we have completed all of our pre-opening obligations under the applicable franchise agreement entered into pursuant to the Development Agreement and you commence doing business under that franchise 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.
During the Term and provided you and your Affiliates are in compliance with this Agreement and all other agreements with us or any of our Affiliates (including Franchise Agreements signed pursuant to this Agreement), we will: (a) grant to you,
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
Yes, the 2025 Checkers Franchise Disclosure Document includes a 'Development Agreement'. Several excerpts confirm the existence of this agreement and its key terms. For instance, there's a reference to 'Exhibit A – Development Obligations,' indicating that the Development Agreement outlines specific obligations for the franchisee.
Furthermore, the document mentions a 'development fee' associated with the Development Agreement, payable as per Exhibit A. This fee is non-refundable and considered earned upon payment. The Development Agreement also grants specific 'Development Rights' to the franchisee, contingent upon compliance with the agreement and other related agreements. These rights are valid for a term specified in Exhibit A.
In addition to the general agreement, there are state-specific addenda that refer to the Development Agreement. For example, the addenda for Maryland, Illinois, and Virginia mention deferred payment of initial fees under the Development Agreement until Checkers has completed its pre-opening obligations related to the first franchise agreement under the Development Agreement. This suggests that the Development Agreement is a crucial component for franchisees planning to develop multiple Checkers locations.