Under what condition is the initial franchise fee for a Checkers restaurant reduced to $15,000?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
in the future.
Non-Traditional Site Addendum
If the Franchised Restaurant is to be located at a Non-Traditional Site, you must enter into our Non-Traditional Site Addendum attached as Exhibit B-3. The Non-Traditional Site Addendum requires you to pay a reduced initial franchise fee of $15,000 and a reduced royalty fee level of 2% of Net Sales at the Franchised Restaurant (as reduced from the standard royalty fee of 4% for new Franchised Restaurants); and, to the extent we or our affiliates can reasonably arrange with the membership of your regional or local cooperative, a reduced cooperative advertising contribution level equal to 50% of the contribution level payable by fellow members of your regional or local cooperative (whose restaurants are not located at a Walmart or other Non-Traditional Site), if any such cooperative already exists
Source: Item 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the initial franchise fee can be reduced to $15,000 if the franchised restaurant is located at a Non-Traditional Site. This is formalized through a Non-Traditional Site Addendum to the franchise agreement.
This addendum not only reduces the initial franchise fee but also affects other fees. Specifically, the royalty fee is reduced to 2% of Net Sales, down from the standard 4% for new restaurants. Additionally, the cooperative advertising contribution level may be reduced to 50% of what other members of the regional or local cooperative pay, assuming such a cooperative exists in the restaurant's area and Checkers can arrange this reduction with the cooperative's membership.
Non-traditional sites are typically locations such as those within airports, universities, or food courts, which often have different operational characteristics and lower overhead costs compared to standalone restaurants. The reduced fees reflect these differences and aim to make franchising more attractive in these venues. Prospective franchisees should carefully review the Non-Traditional Site Addendum (Exhibit B-3) for all applicable terms and conditions.