If a location for the Checkers restaurant is not approved before signing the Franchise Agreement, how is the initial franchise fee payable?
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. The timing of the payment depends on whether Checkers has approved the restaurant location before the Franchise Agreement is signed.
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 the Franchise Agreement is signed. The remaining $20,000 is due within 30 days of Checkers's approval of the restaurant 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 secure an acceptable site within 180 days or cannot obtain necessary permits within 60 days of signing the lease agreement, provided they execute a release of claims against Checkers. If the initial franchise fee is not paid before the restaurant opens, the amount increases by $500 per day until the full amount is received.