Is the initial franchise fee for a Checkers franchise refundable?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
The initial franchise fee is fully earned by us on the effective date of the franchise agreement and is non-refundable, except that we may provide you a refund of 50% of the initial franchise fee if: (a) you (i) are unable to obtain a site acceptable to us within the Designated Area for the Franchised Restaurant within 180 days after the effective date of the franchise agreement, 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 according to applicable law within 60 days after you sign the proposed lease, sublease, or purchase agreement for the location of the Franchised Restaurant; and (b) you and your owners execute general releases, in form and substance satisfactory to us, of any and all claims against us, and our affiliates, officers, directors, employees, agents, successors and assigns.
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 generally non-refundable. The standard initial franchise fee is $30,000, but this amount can vary based on certain incentive programs or addenda to the franchise agreement.
However, Checkers may provide a refund of 50% of the initial franchise fee under specific conditions. These conditions include the franchisee being unable to secure a suitable site within 180 days of the franchise agreement's effective date or failing to obtain necessary permits and approvals within 60 days after signing a lease or purchase agreement, despite good faith efforts.
To receive this partial refund, the franchisee and their owners must execute general releases, satisfactory to Checkers, of any claims against Checkers and its affiliates. This means that while the initial fee is typically non-refundable, there are limited circumstances where a franchisee may recover a portion of it, provided they meet specific criteria and release Checkers from any potential liabilities.