Under the Checkers 2025 Growth Incentive, what conditions must be met to have the royalty fee waived?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
2025 Growth Incentive
If you: (i) sign a Franchise Agreement (and pay the standard initial franchise fee) on or before December 30, 2025; (ii) open the Franchised Restaurant to the general public within 18 months of signing the Franchise Agreement; (iii) the Franchised Restaurant complies with the current reimaging requirements; and (iv) you, your owners, or your and their affiliates are Restaurant Net Positive (defined above) at the time the Franchised Restaurant opens, then we will waive the royalty fee payable under the Franchise Agreement until the earlier of: (a) the total value of the royalty fee abatement (calculated based on the standard royalty fee due under the Franchise Agreement) equals $75,000 or (b) the Franchised Restaurant has operated for twenty-four (24) months.
You must remain in full compliance with your Franchise Agreement to be eligible for any of the development incentives listed above. You will provide us any documentation that we may require proving your compliance with the deadlines included above. To receive the benefit of these reduced royalty amounts, you must sign our required form of 2025 Growth Incentive Addendum to the Franchise Agreement (attache
Source: Item 6 — OTHER FEES (FDD pages 21–30)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the 2025 Growth Incentive provides an opportunity for new franchisees to have their royalty fees waived under certain conditions. To qualify for this incentive, a prospective Checkers franchisee must sign a Franchise Agreement and pay the standard initial franchise fee on or before December 30, 2025. The franchisee must also open the franchised restaurant to the general public within 18 months of signing the Franchise Agreement.
Additionally, the franchised restaurant must comply with the current reimaging requirements set by Checkers. The franchisee, their owners, and their affiliates must be Restaurant Net Positive (as defined in the FDD) at the time the franchised restaurant opens. If all these conditions are met, Checkers will waive the royalty fee payable under the Franchise Agreement.
The royalty fee waiver will continue until the earlier of two conditions: either the total value of the waived royalty fees (calculated based on the standard royalty fee due under the Franchise Agreement) reaches $75,000, or the franchised restaurant has been in operation for twenty-four (24) months. To receive the benefit of these reduced royalty amounts, you must sign Checkers' required form of 2025 Growth Incentive Addendum to the Franchise Agreement (attached as Exhibit B-2 to this Franchise Disclosure Document).