What is the standard initial franchise fee for Checkers (Item 5) and when is the full amount due?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
chise Agreement**
Initial Franchise Fee
The standard initial franchise fee is $30,000. If we have approved the location of the Franchised Restaurant prior to signing the Franchise Agreement, then you must pay the full amount of the initial franchise fee when you sign the Franchise Agreement. If we and you have not agreed upon an approved location of the Franchised Restaurant before signing the Franchise Agreement, then the initial franchise fee is payable as follows: $10,000 on the date you sign the Franchise Agreement; and the remaining $20,000 within 30 days of our approval of the location of the Franchised Restaurant.
If you sign the Franchise Agreement in connection with a Development Agreement, then the applicable portion of the development fee you paid under the Development Agreement toward the Franchised Restaurant will be credited against the initial franchise fee payable and due to us under the Franchise Agreement, according to that Development Agreement's terms. If you sign the Franchise Agreement and a Non-Traditional Site Addendum to operate the Franchised Restaurant from a Non-Traditional Site, then the initial franchise fee will be reduced to $15,000 as discussed below. If you sign the Franchise Agreement as part of your independent purchase of (or receipt of transferred ownerships interests in) the Franchised Restaurant's assets from a third party owner, then you will not pay us an initial franchise fee, but you must ensure that we receive the full amount of the associated transfer fee due to us as a result of that transaction (by way of example only
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the standard initial franchise fee is $30,000. The timing of when this fee is due depends on whether Checkers has approved the restaurant location before the franchise agreement is signed.
If Checkers approves the location before signing the agreement, the full $30,000 is due when the franchise agreement is signed. However, if the location is not yet approved when the agreement is signed, the fee is paid in two installments: $10,000 is due upon signing the agreement, and the remaining $20,000 is due within 30 days of Checkers' approval of the restaurant location.
There are some exceptions to the standard initial franchise fee. If the franchisee signs a Non-Traditional Site Addendum to operate at a non-traditional site, the initial franchise fee is reduced to $15,000. Also, if the franchisee is purchasing an existing Checkers restaurant from a third party, they will not pay Checkers an initial franchise fee. Instead, they must ensure Checkers receives the full amount of the associated transfer fee.