If Checkers approves the restaurant location before the Franchise Agreement is signed, when is the full initial franchise fee due?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
chise Agreement**
Initial Franchise Fee
The standard initial franchise fee is $30,000. If we have approved the location of the Franchised Restaurant prior to signing the Franchise Agreement, then you must pay the full amount of the initial franchise fee when you sign the Franchise Agreement. If we and you have not agreed upon an approved location of the Franchised Restaurant before signing the Franchise Agreement, then the initial franchise fee is payable as follows: $10,000 on the date you sign the Franchise Agreement; and the remaining $20,000 within 30 days of our approval o
Source: Item 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the timing of the initial franchise fee payment depends on when the location is approved. The standard initial franchise fee is $30,000. If Checkers approves the restaurant location before the Franchise Agreement is signed, the full $30,000 is due when the franchisee signs the Franchise Agreement.
However, if Checkers and the franchisee have not agreed upon an approved location before signing the Franchise Agreement, the initial franchise fee is payable in two installments. The franchisee must pay $10,000 on the date they sign the Franchise Agreement, and the remaining $20,000 is due within 30 days of Checkers's approval of the location.
It is important to note that the initial franchise fee is generally non-refundable. However, Checkers may provide a refund of 50% of the initial franchise fee under specific conditions, such as if the franchisee is unable to obtain a suitable site within 180 days after the effective date of the franchise agreement or fails to obtain necessary permits within 60 days after signing the lease agreement, despite good faith efforts. The franchisee and their owners must also execute general releases of claims against Checkers to qualify for this refund.