What is the Checkers renewal fee if the successor franchise term is 10 years?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| COLUMN 1 | COLUMN 2 | COLUMN 3 | COLUMN 4 |
|---|---|---|---|
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (See Note 1) |
| Renewal Fee | Up to 50% of then current standard initial franchise fee, depending on the length of your successor franchise term. | Upon signing the new franchise agreement. | If your successor franchise term is 10 years, the renewal fee is 33.33% of the then current initial franchise fee for a new Restaurant; if your successor franchise term is 20 years, the renewal fee is 50% of the then-current initial franchise fee. |
Source: Item 6 — OTHER FEES (FDD pages 21–30)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the renewal fee is dependent on the length of the successor franchise term. If a Checkers franchisee chooses a successor franchise term of 10 years, the renewal fee is 33.33% of the then-current initial franchise fee for a new restaurant.
This means that when the franchise agreement is up for renewal, Checkers will assess the initial franchise fee for new restaurants at that time. The franchisee seeking to renew for a 10-year term would then pay 33.33% of that current initial franchise fee. For example, if the initial franchise fee for a new Checkers restaurant is $50,000 at the time of renewal, the renewal fee for a 10-year term would be $16,665.
It's important for prospective franchisees to understand that the renewal fee is not a fixed amount but rather a percentage of the initial franchise fee at the time of renewal. This fee is payable upon signing the new franchise agreement. Franchisees should factor in the potential for changes in the initial franchise fee when planning for the costs of renewing their franchise agreement.