What is the reduced Initial Franchise Fee for Checkers franchisees who qualify under this 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 Fee due under Franchisor's current form of franchise agreement is reduced by $10,000 if the franchisee opens its Restaurant within one (1) year of signing the Franchise Agreement (the "Existing Franchisee Incentive" or "Incentive");
WHEREAS, Franchisee is an existing franchisee under separate franchise agreements with Franchisor for the operation of at least two (2) "Checkers" or "Rally's" restaurants;
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, the initial franchise fee can be reduced under certain addendums. For existing franchisees who qualify for the Existing Franchisee Incentive, the initial franchise fee is reduced by $10,000 if the franchisee opens their restaurant within one year of signing the Franchise Agreement. For franchisees operating from a Non-Traditional Site, the initial franchise fee is reduced by $15,000 from the standard amount. Additionally, if at least 51% of the ownership is held by a woman who qualifies for the Incentive, the initial franchise fee is reduced to zero dollars ($0).
These incentives are designed to encourage growth and diversity within the Checkers franchise system. The Existing Franchisee Incentive rewards current franchisees for expanding their operations, while the Non-Traditional Site incentive acknowledges the potentially lower startup costs and different operational requirements of such locations. The incentive for women-owned franchises aims to promote gender diversity among Checkers franchisees.
However, these reduced fees come with conditions. For example, if a franchisee requests a transfer before opening the restaurant, they may have to pay the full standard initial franchise fee. Similarly, if a franchisee breaches the qualification criteria, they may be required to pay back the amount of the fee reduction. Prospective franchisees should carefully review the specific terms and conditions of each incentive program to ensure they understand their obligations and potential liabilities.
It is important for potential Checkers franchisees to discuss these incentives with the franchisor to determine their eligibility and to fully understand the terms and conditions. Understanding these incentives can significantly impact the initial investment required to start a Checkers franchise.