What is the initial franchise fee for a Checkers restaurant if the location is approved before signing the agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
prosecute, defend and/or settle any proceeding arising out of your use of any Mark pursuant to this Agreement, and, if we undertake to prosecute, defend and/or settle any such matter, we will have no obligation to indemnify or reimburse you for any fees or disbursements of any legal counsel or other advisors you may have retained.
6. FEES.
6.01 Initial Franchise Fee. If we have approved the location of the Franchised Restaurant before signing this Agreement, then you agree to pay us an initial franchise fee of Thirty Thousand Dollars ($30,000) on the date you sign this Agreement. If we and you have not agreed upon an approved location for the Franchised Restaurant before signing this Agreement, then you agree to pay us an initial franchise fee of Thirty Thousand Dollars ($30,000) in two installments as follows:
Installment 1: Ten Thousand Dollars ($10,000) on the date you sign this
Agreement; and
Installment 2: the remaining Twenty Thousand Dollars ($20,000) within
30 days of our approval of the Premises.
If you fail, for whatever reason, to pay the initial franchise fee before the Franchised Restaurant is opened, the amount of the initial franchise fee shall increase by Five Hundred Dollars ($500) per day upon and after the opening date until we receive the full amount of the initial franchise fee, including all cumulative daily increases accruing since the opening date. You agree that such increases are to compensate us for
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if Checkers approves the restaurant location before the franchise agreement is signed, the initial franchise fee is $30,000. This fee is due on the date the franchise agreement is signed.
In contrast, if a location is not approved before signing, the initial franchise fee is also $30,000, but the payment is split into two installments: $10,000 upon signing the agreement and the remaining $20,000 within 30 days of location approval.
It's important to note that failure to pay the initial franchise fee before the restaurant opens results in an increase of $500 per day until the full amount is paid. This daily increase is not considered interest but rather compensation for administrative and collection efforts. Furthermore, failure to pay the initial franchise fee can lead to termination of the franchise agreement.