Does the Illinois Rider to the Checkers Franchise Agreement affect the payment of initial fees?

According to Checkers' 2025 Franchise Disclosure Document, the Illinois Rider to the Franchise Agreement does affect the payment of initial franchise fees. Specifically, the rider amends Section 6.01 of the Franchise Agreement to defer the collection of all initial fees.

This means that if a Checkers franchisee is opening a restaurant in Illinois, or is a resident of Illinois, they will not have to pay the initial franchise fee until Checkers has completed all of its pre-opening obligations, and the franchisee has commenced business. This deferral is a requirement imposed by the Illinois Attorney General's Office based on Checkers' audited financial statements.

This modification provides a significant benefit to franchisees in Illinois, as it reduces their upfront financial burden. Instead of paying the initial fee, which is $30,000 according to section 6.01, before the restaurant opens, franchisees can delay this payment until after they have started generating revenue. This can help with cash flow during the initial stages of the business.

It's important to note that this deferral is specific to Illinois and is contingent on meeting the jurisdictional requirements of the Illinois Franchise Disclosure Act. Franchisees should carefully review the Illinois Rider and the Franchise Agreement to understand all the terms and conditions related to the payment of initial fees.