What happens if the initial franchise fee for a Checkers restaurant is not paid before the restaurant opens?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
t, then you agree to pay us an initial franchise fee of Thirty Thousand Dollars ($30,000) in two installments as follows:
Installment 1: Ten Thousand Dollars ($10,000) on the date you sign this
Agreement; and
Installment 2: the remaining Twenty Thousand Dollars ($20,000) within
30 days of our approval of the Premises.
If you fail, for whatever reason, to pay the initial franchise fee before the Franchised Restaurant is opened, the amount of the initial franchise fee shall increase by Five Hundred Dollars ($500) per day upon and after the opening date until we receive the full amount of the initial franchise fee, including all cumulative daily increases accruing since the opening date. You agree that such increases are to compensate us for
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, failing to pay the initial franchise fee before opening a restaurant results in financial penalties and potential termination of the franchise agreement. The initial franchise fee for a Checkers restaurant is $30,000. If the location is approved before signing the agreement, the full fee is due upon signing. If the location is approved after signing, $10,000 is due upon signing and the remaining $20,000 within 30 days of the premises approval.
If the initial franchise fee is not paid before the restaurant opens, Checkers will increase the fee by $500 per day from the opening date until the full amount, including all daily increases, is received. These increases are designed to cover Checkers' administrative and collection expenses, and are not considered interest charges or penalties.
Furthermore, failure to pay the initial franchise fee when it is due gives Checkers grounds to terminate the franchise agreement, as detailed in Section 14 of the agreement. This underscores the importance of adhering to the payment schedule to maintain good standing as a Checkers franchisee.