When is the initial franchise fee considered fully earned by Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
The initial franchise fee (and asset transfer fee, if applicable) is fully earned by us as of the Effective Date and is non-refundable, except that we may provide you a refund of fifty percent (50%) of the initial franchise fee paid to us if: (a) you (i) are unable to obtain a site acceptable to us within the Designated Area for the Franchised Restaurant within the time period prescribed in Section 3.02, or (ii) despite having expended good faith best efforts (as we determine in our sole judgment), have not obtained all necessary permits, licenses, or other regulatory or municipal approvals to be able to open the Franchised Restaurant in accordance with applicable law within sixty (60) days after your execution of the proposed lease, sublease or purchase agreement for the Premises; and (b) you and your Owners execute general releases, in form and substance satisfactory to us, of any and all
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the initial franchise fee is considered fully earned by Checkers as of the Effective Date of the franchise agreement. This means that once the agreement is in effect, Checkers has earned the fee.
Generally, the initial franchise fee is non-refundable. However, Checkers does provide a potential refund of fifty percent (50%) of the initial franchise fee if the franchisee meets specific conditions. These conditions include being unable to secure a site acceptable to Checkers within the designated area within the prescribed time, or despite good faith efforts, failing to obtain all necessary permits, licenses, or other regulatory approvals to open the franchised restaurant within sixty (60) days after executing the lease, sublease, or purchase agreement for the premises.
To receive this refund, the franchisee and their owners must execute general releases, in a form and substance satisfactory to Checkers, of any and all claims against Checkers, its affiliates, officers, directors, employees, agents, successors, and assigns. This ensures that Checkers is protected from any future legal action related to the failed franchise opening.