If a Checkers franchise agreement is executed pursuant to a Development Agreement, how does that affect the initial franchise fee?

According to Checkers's 2025 Franchise Disclosure Document, if a franchise agreement is executed under a Development Agreement, the initial franchise fee may be subject to a credit. This credit would represent a portion of the development fee, and its application toward the initial franchise fee would be determined by the specific provisions outlined in the relevant Development Agreement.

In essence, this means that prospective Checkers franchisees who commit to a multi-unit development plan might receive a reduction in the standard initial franchise fee for each restaurant. The amount of the reduction, and the conditions under which it is applied, are negotiated and formalized within the Development Agreement itself. This incentivizes multi-unit development by lowering the upfront costs associated with each individual franchise.

It is important for potential Checkers franchisees to carefully review the Development Agreement to understand the exact terms of the credit. This includes the amount of the credit, how it is applied, and any conditions that must be met to qualify for the credit. Franchisees should also confirm that the Development Agreement complies with any state-specific regulations, such as those that may require deferral of initial fees until certain pre-opening obligations are met.