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What is the initial franchise fee for a Checkers franchise if a Non-Traditional Site Addendum is signed?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

in the future.

Non-Traditional Site Addendum

If the Franchised Restaurant is to be located at a Non-Traditional Site, you must enter into our Non-Traditional Site Addendum attached as Exhibit B-3. The Non-Traditional Site Addendum requires you to pay a reduced initial franchise fee of $15,000 and a reduced royalty fee level of 2% of Net Sales at the Franchised Restaurant (as reduced from the standard royalty fee of 4% for new Franchised Restaurants); and, to the extent we or our affiliates can reasonably arrange with the membership of your regional or local cooperative, a reduced cooperative advertising contribution level equal to 50% of the contribution level payable by fellow members of your regional or local cooperative (whose restaurants are not located at a Walmart or other Non-Traditional Site), if any such cooperative already exists

Source: Item 5 — INITIAL FEES (FDD pages 17–21)

What This Means (2025 FDD)

According to Checkers's 2025 Franchise Disclosure Document, the initial franchise fee is reduced if a franchisee signs a Non-Traditional Site Addendum. This addendum is required if the franchised restaurant is located at a non-traditional site. The initial franchise fee under this addendum is $15,000. This is a reduction from the standard initial franchise fee.

In addition to the reduced initial franchise fee, the Non-Traditional Site Addendum also stipulates a reduced royalty fee of 2% of Net Sales, which is lower than the standard 4% royalty fee for new Checkers franchises. Furthermore, the cooperative advertising contribution level may also be reduced to 50% of the contribution level payable by other members of the regional or local cooperative, assuming Checkers can reasonably arrange this with the cooperative's membership. This advertising reduction applies if a cooperative already exists or is formed in the restaurant's area and whose restaurants are not located at a Walmart or other Non-Traditional Site.

For prospective franchisees, this addendum presents a potentially more affordable entry point into the Checkers system, with lower initial fees and ongoing royalties. However, it is crucial to understand the specific criteria for what constitutes a "Non-Traditional Site" and to assess whether the potential revenue from such a location justifies the investment. Franchisees should also clarify the terms and conditions of the cooperative advertising contribution to fully understand the financial implications.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.