If a Checkers franchisee operates one Checkers and one Rally's restaurant, do they qualify for 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 F
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the Existing Franchisee Incentive program is available to qualified existing franchisees of either "Checkers" or "Rally's" restaurants. To qualify for the incentive, the franchisee must open their new restaurant within one year of signing the Franchise Agreement. The incentive reduces the Initial Franchise Fee by $10,000 under the current form of the franchise agreement.
Based on this information, a Checkers franchisee who operates one Checkers restaurant and one Rally's restaurant would likely qualify for the Existing Franchisee Incentive, provided they meet all other qualifications. The key requirement is that they are an existing franchisee operating at least two Checkers or Rally's restaurants under separate franchise agreements with the franchisor.
It's important to note that the FDD also mentions a "2024 Growth Incentive" program, which offers a temporary reduction on royalty fees and a reduction of initial franchise fees for franchisees who sign a Franchise Agreement on or before December 31, 2025. The specific requirements and benefits of this incentive may differ from the Existing Franchisee Incentive. A prospective franchisee should carefully review the terms and conditions of each incentive program to determine which one best suits their situation.
To ensure eligibility and understand all applicable terms, a prospective franchisee should confirm with the franchisor whether operating both a Checkers and a Rally's restaurant satisfies the requirement of being an existing franchisee with at least two restaurants. They should also inquire about any other conditions or limitations that may apply to the incentive programs.