Under what circumstances is the Checkers development fee refundable?

According to Checkers's 2025 Franchise Disclosure Document, the development fee is generally non-refundable. The standard development fee is $10,000 for each restaurant to be developed. This fee is deemed earned when paid to Checkers. However, there is one specific circumstance under which a refund of the unapplied portion of the development fee may occur.

The FDD states that Checkers has no obligation to refund any portion of the development fee upon termination of the agreement. However, Checkers will refund the unapplied portion of the development fee if the termination occurs due to a specific reason: if any applicable federal or state legislation, regulation, or rule, which is enacted, promulgated, or amended after the effective date of the agreement, may have an adverse effect on Checkers's rights, remedies, or discretion in franchising restaurants. This is the only condition under which a refund is specified.

This condition is related to Section 8.02(g) of the agreement, which likely details the circumstances under which Checkers can terminate the agreement due to adverse legislative or regulatory changes. For a prospective franchisee, this means that while the development fee is typically non-refundable, there is a provision that protects the franchisee's investment should unforeseen legal or regulatory changes negatively impact Checkers's ability to franchise. It is important to review Section 8.02(g) of the franchise agreement to fully understand the implications of this clause.