Does Checkers offer an Existing Franchisee Incentive Addendum, and if so, what exhibit is it included as?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached as Exhibits to this Franchise Disclosure Document are the following contracts and their attachments:
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- Franchise Agreement (Exhibit B)
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- Existing Franchisee Incentive Addendum (Exhibit B-1)
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- 2025 Growth Incentive Addendum (Exhibit B-2)
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- Non-Traditional Site Addendum (Exhibit B-3)
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- Vet Fran Incentive Addendum (Exhibit B-4)
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- Women Business Owner Incentive Addendum (Exhibit B-5)
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- Development Agreement (Exhibit C)
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- Electronic Payment Authorization (Exhibit E)
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers does offer an Existing Franchisee Incentive Addendum. This addendum is included as Exhibit B-1 to the Franchise Agreement.
The Existing Franchisee Incentive Addendum modifies the standard Franchise Agreement for franchisees who already own at least two Checkers or Rally's restaurants. This incentive reduces the initial franchise fee by $10,000 if the franchisee opens their new restaurant within one year of signing the Franchise Agreement.
To qualify for the incentive, franchisees must be in good standing with Checkers, fully compliant with all existing agreements, and commit to opening the new restaurant within the specified timeframe. The addendum stipulates that it becomes part of the Franchise Agreement, with the addendum taking precedence in case of any conflicts between the two documents.
This incentive is designed to encourage existing franchisees to expand their operations, offering a financial benefit for those who meet the criteria and can open a new location quickly. The addendum also includes standard legal clauses, such as those related to the entire agreement, counterparts, and electronic signatures, ensuring the agreement is legally sound and enforceable.