Is there a limit to the frequency or cost of computer system upgrades or updates that Checkers may require?

According to Checkers's 2025 Franchise Disclosure Document, Checkers may require franchisees to upgrade or update their computer systems periodically. The FDD states that there are no limitations on the frequency or cost of these required upgrades or updates.

This means that a Checkers franchisee could face unexpected expenses related to keeping their computer systems compliant with Checkers's standards. These costs could potentially be substantial and could occur at any time during the franchise term. It is important to note that franchisees must use computer-based cash registers that are fully compatible with Checkers's computer system, including an information interface capability.

Given this lack of limitations, it is crucial for prospective franchisees to discuss potential upgrade costs and frequency with existing franchisees during their due diligence. Understanding the typical lifecycle and costs of the computer systems used in Checkers restaurants will help in financial planning. Additionally, prospective franchisees may want to discuss with Checkers what factors trigger a system-wide upgrade and if there is any advanced notice given so franchisees can budget accordingly.

While the FDD does not provide specific figures, it does mention that the initial hardware and software costs for the Aloha POS system, firewall system, and Xenial restaurant management system range from approximately $22,000 to $27,000, with annual ongoing costs ranging from $1,400 to $6,000, depending on the hardware and number of terminals. These figures give some insight into the potential scale of technology-related investments, but do not account for the cost of future mandatory upgrades.