What must a Checkers franchisee do to be eligible for a refund of the initial franchise fee?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
The initial franchise fee (and asset transfer fee, if applicable) is fully earned by us as of the Effective Date and is non-refundable, except that we may provide you a refund of fifty percent (50%) of the initial franchise fee paid to us if: (a) you (i) are unable to obtain a site acceptable to us within the Designated Area for the Franchised Restaurant within the time period prescribed in Section 3.02, or (ii) despite having expended good faith best efforts (as we determine in our sole judgment), have not obtained all necessary permits, licenses, or other regulatory or municipal approvals to be able to open the Franchised Restaurant in accordance with applicable law within sixty (60) days after your execution of the proposed lease, sublease or purchase agreement for the Premises; and (b) you and your Owners execute general releases, in form and substance satisfactory to us, of any and all
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, a franchisee may be eligible for a refund of fifty percent (50%) of the initial franchise fee under specific conditions. To qualify for this refund, the franchisee must meet two primary requirements. First, they must either be unable to secure a site acceptable to Checkers within the designated area within the timeframe outlined in Section 3.02 of the franchise agreement, or despite their best efforts, they have not obtained all necessary permits, licenses, or other regulatory approvals to open the franchised restaurant within sixty (60) days after executing the lease, sublease, or purchase agreement for the premises.
Second, the franchisee and their owners must execute general releases, in a form and substance satisfactory to Checkers. These releases must waive any and all claims against Checkers, its affiliates, officers, directors, employees, agents, successors, and assigns. This indicates that the refund is contingent upon the franchisee relinquishing any legal rights or claims they might have against Checkers.
It is important to note that the initial franchise fee (and asset transfer fee, if applicable) is considered fully earned by Checkers as of the Effective Date. This means that the refund is an exception rather than the rule, and is only granted under the specific circumstances detailed in the FDD. A prospective franchisee should carefully consider these conditions and understand the implications of signing a general release before seeking a refund of the initial franchise fee.