When are royalty fees due for a Checkers franchise?

According to Checkers' 2025 Franchise Disclosure Document, royalty fees are 4% of Net Sales. These fees are payable on or before the 5th and 20th day of each calendar month. The fees apply to the Net Sales accrued during the most recently ended Bi-weekly Period before the payment date.

This bi-weekly payment schedule is fairly common in the franchise industry, allowing franchisors to maintain consistent cash flow. For a Checkers franchisee, this means carefully tracking sales every two weeks to ensure timely royalty payments. Failing to pay on time can result in interest charges and, ultimately, termination of the franchise agreement.

Checkers also requires franchisees to sign an electronic payment authorization agreement, allowing the company to automatically debit the franchisee's bank account for royalty fees and other amounts owed. Franchisees must ensure sufficient funds are available to cover these withdrawals. Insufficient funds will result in a $250 processing fee and may require the franchisee to make subsequent payments via certified check. Consistent failure to pay all amounts when due can lead to the termination of the Franchise Agreement.