If the location of the Checkers Franchised Restaurant is not approved before signing the Franchise Agreement, what is the payment schedule for the initial franchise fee?
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 standard initial franchise fee is $30,000. However, the payment schedule differs depending on whether the location is approved before signing the Franchise Agreement.
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. The remaining $20,000 is due within 30 days of Checkers's approval of the restaurant location.
This payment schedule provides some flexibility for prospective Checkers franchisees who have not yet secured a location. It allows them to begin the franchising process without paying the entire initial fee upfront. However, the franchisee should be aware that the remaining balance is due relatively soon after location approval, so they should be prepared to pay the $20,000 within 30 days of approval.