What royalty rate will a Checkers franchisee pay beginning in the thirteenth month following the reopening after a reimage under the 2025 Reimage Incentive?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If you meet the following criteria: (i) you are signing a franchise agreement on or before June 30, 2025; (ii) you complete a full scope reimage (as approved in advance by us) that complies with our current reimaging requirements by December 30, 2025; and (iii) you, your owners, and your and their affiliates are in full compliance with the franchise agreement and any other agreement between us and you or them, then from the date the Franchised Restaurant opens following the reimage continuing through until the end of the twelfth month of operation following reopening, your royalty will be 2% of Net Sales. Beginning in the thirteenth month following the reopening and for the remainder of the term of the Franchise Agreement, your royalty will be 4% of Net Sales. To receive the benefit of these reduced royalty amounts, you must sign our required form of 2025 Reimage Incentive Addendum to the Franchise Agreement (attached as Exhibit B-6 to this Franchise Disclosure Document).
Source: Item 6 — OTHER FEES (FDD pages 21–30)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, a franchisee participating in the 2025 Reimage Incentive program will pay a royalty fee of 4% of Net Sales beginning in the thirteenth month following the restaurant's reopening after the reimage. This royalty rate applies for the remainder of the franchise agreement term.
To qualify for the 2025 Reimage Incentive, a Checkers franchisee must meet specific criteria. First, they must sign a franchise agreement on or before June 30, 2025. Second, they need to complete a full-scope reimage that Checkers approves in advance, ensuring it complies with the current reimaging requirements by December 30, 2025. Finally, the franchisee, their owners, and their affiliates must be in full compliance with the franchise agreement and any other agreements with Checkers.
To receive the reduced royalty rates during the first twelve months and the subsequent rate of 4%, the franchisee must sign the required 2025 Reimage Incentive Addendum to the Franchise Agreement, which is included as Exhibit B-6 to the Franchise Disclosure Document. This addendum likely outlines the specific terms and conditions of the incentive program, ensuring both the franchisee and Checkers are aligned on the requirements and benefits.