What is the maximum sublease administrative fee that Checkers charges if they sublease the premises to the franchisee?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.03 Sublease Administrative Fee. If we agree to sublease the Premises of your Franchised Restaurant to you and remain on the master lease, then we will charge you a sublease administrative fee of up to 10% of the rent that remains due under the then-current lease term in consideration of our remaining a guarantor on the lease.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if Checkers agrees to sublease the premises to the franchisee and remains on the master lease, Checkers will charge a sublease administrative fee. This fee can be up to 10% of the rent that remains due under the current lease term.
This fee compensates Checkers for remaining a guarantor on the lease. As a guarantor, Checkers is responsible for the lease obligations if the franchisee defaults.
For a prospective franchisee, this means that in addition to the regular rent payments, they may also have to pay an administrative fee to Checkers for the sublease. The amount of this fee will depend on the remaining rent due under the lease and is capped at 10% of that amount. Franchisees should consider this potential cost when evaluating the financial feasibility of a Checkers franchise location.