What must a Checkers franchisee do to receive the benefits of the Incentive?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
--|----|-----|---------|----------|-------------------------------------------------------------------------------------| | | | | | | | | | | RESTAURANTS, INC., a Delaware corporation ("Franchisor," "we," "our," or "us"), and | | | | | | | | | | | ("you" or "your" or "Franchisee"). We and you may each | | | | | be referred to as a "Party," or collectively, the "Parties." | | | | | | |
R E C I T A L S
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;
| | WHEREAS, Franchisor | | | | and Franchisee are Parties to that certain Franchise Agreement | | | |---------|---------------------|-------------------------------------------------------------------------------------------|----|-----------|----------------------------------------------------------------|---------|----| | | | dated of even date herewith (the "Franchise Agreement") pursuant to which Franchisee will | | | | | | | operate | another | "Checkers" (the "Franchised Restaurant"); | or | "Rally's" | restaurant | located | at | WHEREAS, Franchisee desires to qualify for and receive, the benefits of the Incentive; and
WHEREAS, the Parties now desire to modify the Franchise Agreement according to the terms and conditions set forth in this Addendum.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
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- Relationship to Franchise Agreement; Recitals. This Addendum shall be annexed to and form a part of the Franchise Agreement. All capitalized terms not otherwise defined in this Addendum shall have the meanings set forth in the Franchise Agreement. Except as modified by this Addendum, the Franchise Agreement remains in full force and effect.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, to qualify for the Existing Franchisee Incentive, an existing franchisee must meet specific conditions. The franchisee must currently operate at least two Checkers or Rally's restaurants under separate franchise agreements with the company.
To maintain eligibility for the incentive, the franchisee must remain in good standing and comply with all existing agreements with Checkers or its affiliates, including the Franchise Agreement. Additionally, the franchisee must open the new franchised restaurant within one year of signing the Franchise Agreement. Meeting these qualifications allows the franchisee to benefit from a $10,000 reduction in the initial franchise fee, lowering it from the standard amount typically due for a new restaurant.
It's important to note that if the franchisee breaches any of these conditions or is found to have violated them at any point during the term, Checkers can require the franchisee to pay back the amount of the fee reduction. This condition underscores the importance of adhering to the terms of the addendum and the Franchise Agreement to retain the incentive's benefits.