When are Checkers royalty fees due?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ty (60) days after your execution of the proposed lease, sublease or purchase agreement for the Premises; and (b) you and your Owners execute general releases, in form and substance satisfactory to us, of any and all
claims against us, and our Affiliates, officers, directors, employees, agents, successors and assigns.
- 6.02 Royalty Fees. You agree to pay us royalty fees of four percent (4%) of Net Sales, payable on or before the fifth (5th) and twentieth (20th) days of each calendar month with respect to the Net Sales accrued during the most recently ended Bi-weekly Period before the payment date.
- 6.03 Sublease Administrative Fee. If we agree to sublease the Premises of your Franchised Restaurant to you and remain on the master lease, then we will charge you a sublease administrative fee of up to 10% of the rent that remains due under the then-current lease term in consideration of our remaining a guarantor on the lease.
- 6.04 Interest On Late Payments. All amounts which you owe us or any of our Affiliates for any reason, including amounts payable into the NPF (as provided in Sections 3.05 and 10.01), shall bear interest accruing as of their original due date at the maximum interest rate permitted by law, If there is no applicable legal maximum rate, interest will be calculated at the rate of four percent (4%) above the prime rate of interest on the first day of each month for the past due amount, as published in The Wall Street Journal.
- 6.05 Automatic Clearing House Agreement. You agree, at our request, to sign an electronic payment authorization agreement in a form we prescribe that authorizes us to automatically debit your bank account, on the dates payments are due, for any royalty fees, rents, the Initial Advertising Deposit and other amounts due and owing under this Agreement and any other agreements between you and us. You agree to ensure that funds are available in your bank account to cover our withdrawals. If there are insufficient funds in your bank account to cover any such amount owed (or, if you are paying by check and a check is returned for insufficient funds), you must pay us, on demand, a processing fee of Two Hundred Fifty Dollars ($250). If there are insufficient funds in your bank account, or if your check is returned for insufficient funds, then we may require you to make all subsequent payments to us by certified check.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, franchisees must pay royalty fees, which are 4% of Net Sales, on or before the fifth and twentieth day of each calendar month. These payments cover the Net Sales accrued during the bi-weekly period that ended most recently before the payment date.
Checkers may also request that franchisees sign an electronic payment authorization agreement allowing Checkers to automatically debit the franchisee's bank account for royalty fees and other amounts owed. If a franchisee's payment is late, Checkers can charge interest on the past due amount. The interest will accrue from the original due date at the maximum interest rate permitted by law. If there is no legal maximum, the interest rate will be 4% above the prime rate as published in The Wall Street Journal on the first day of each month.
Furthermore, if a payment is returned for insufficient funds, Checkers can charge a $250 processing fee. In the event of insufficient funds or a returned check, Checkers may require the franchisee to make all subsequent payments via certified check. Failure to pay all amounts when due constitutes grounds for termination of the Franchise Agreement.