Under what condition will Checkers refund the uncredited portion of the development fee?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
imate can be developed within the Development Area.
Under the Development Agreement, you are required to pay the then-current standard initial franchise fee for each Restaurant you are required to develop under a Development Agreement; however, $10,000 of the development fee is credited to the initial franchise fee payable for each Restaurant you are required to open under the Development Agreement until the development fee is credited in full. The development fee is not refundable, in whole or in part, except if we terminate the Development Agreement as a result of adverse franchise legislation. In this event, we will r
Source: Item 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the development fee, which is $10,000 per restaurant to be developed under a Development Agreement, is generally non-refundable. However, there is one specific circumstance under which a refund of the uncredited portion of the development fee may be issued.
Checkers will refund the uncredited portion of the development fee only if Checkers terminates the Development Agreement as a result of adverse franchise legislation. This means that if changes in laws or regulations related to franchising negatively impact the agreement, leading Checkers to terminate it, the franchisee would be entitled to a refund of any development fees that have not yet been applied as credit towards initial franchise fees.
It is important for prospective Checkers franchisees to understand that this is the only scenario in which a refund is possible. Franchisees should carefully consider the potential risks associated with changes in franchise legislation and discuss this provision with Checkers before entering into a Development Agreement.