Does Checkers require franchisees to sign an electronic payment authorization agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 22 CONTRACTS
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, franchisees are required to sign an Electronic Payment Authorization agreement. This agreement is listed as Exhibit E to the FDD. This means that as part of the franchising process, Checkers requires franchisees to authorize electronic payments, likely for fees, royalties, or other financial obligations to the company.
Electronic payment authorizations are a fairly standard practice in franchising. They streamline the payment process and ensure timely remittance of funds to the franchisor. Franchisees should carefully review the terms of the Electronic Payment Authorization agreement to understand the amounts, frequency, and methods of payment that will be automatically debited from their account.
Prospective Checkers franchisees should be aware of this requirement and factor it into their financial planning. It is important to understand how these electronic payments will impact cash flow and budgeting. Franchisees should also inquire about the procedures for disputing any charges or terminating the authorization if necessary. Understanding these details upfront can help avoid potential financial or administrative issues down the road.