What is the maximum sublease administrative fee that Checkers may charge, and how is it calculated?

According to Checkers's 2025 Franchise Disclosure Document, if a franchisee is buying an existing Checkers or Rally's Restaurant from Checkers or its affiliate, and Checkers agrees to sublease the premises while remaining on the master lease, Checkers may charge a sublease administrative fee. This fee can be up to 10% of the rent remaining due under the current lease term. This fee is in consideration for Checkers remaining as a guarantor on the lease.

For a prospective franchisee, this means that if they are acquiring an existing Checkers location and Checkers remains on the master lease, they should be prepared to pay this administrative fee. The actual amount will depend on the specific terms of the lease and the remaining rent due. It is important for franchisees to factor this potential cost into their financial projections when considering the purchase of an existing Checkers restaurant.

This type of fee is not uncommon in franchise sublease situations, as the franchisor is taking on risk by remaining on the master lease. Franchisees should carefully review the lease terms and understand how this fee is calculated to avoid any surprises. It would be prudent for a prospective franchisee to discuss this fee with Checkers during the due diligence process to get a clear understanding of how it would apply to their specific situation.