What is the minimum number of Checkers or Rally's restaurants a franchisee must operate to qualify for the Existing Franchisee Incentive Addendum?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
--|----|-----|---------|----------|-------------------------------------------------------------------------------------| | | | | | | | | | | RESTAURANTS, INC., a Delaware corporation ("Franchisor," "we," "our," or "us"), and | | | | | | | | | | | ("you" or "your" or "Franchisee"). We and you may each | | | | | be referred to as a "Party," or collectively, the "Parties." | | | | | | |
R E C I T A L S
WHEREAS, Franchisor has implemented an incentive program available to qualified existing franchisees of "Checkers" or "Rally's" restaurants under which the Initial Franchise F
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, to qualify for the Existing Franchisee Incentive, a franchisee must already operate a minimum number of Checkers or Rally's restaurants. Specifically, the Existing Franchisee Incentive reduces the initial franchise fee by $10,000 if the franchisee opens their restaurant within one year of signing the Franchise Agreement.
To be eligible for this incentive, the franchisee must be an existing franchisee operating at least two Checkers or Rally's restaurants under separate franchise agreements with Checkers. This incentive is designed to encourage existing franchisees to expand their operations by opening new locations more quickly.
This requirement ensures that the incentive is targeted towards experienced franchisees who have a proven track record with the Checkers or Rally's system. By requiring franchisees to already operate multiple locations, Checkers aims to incentivize growth among its established and successful operators, potentially leading to more efficient and profitable new restaurant openings.