Under what conditions does Checkers charge a sublease administrative fee?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If your Franchise Agreement is for an existing Checkers Restaurant or Rally's Restaurant you are buying from us or our affiliate, and we agree to sublease the Premises of your Franchised Restaurant to you and remain on the master lease, then we may charge you a sublease administrative fee of up to 10% of the rent that remains due under the thencurrent lease term in consideration of our remaining a guarantor on the lease.
Source: Item 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, a sublease administrative fee may be charged under specific circumstances when a franchisee is buying an existing Checkers or Rally's Restaurant from Checkers or its affiliate. If Checkers agrees to sublease the premises to the franchisee and remains on the master lease, Checkers may charge a sublease administrative fee.
The sublease administrative fee can be up to 10% of the rent that remains due under the current lease term. This fee is in consideration for Checkers remaining as a guarantor on the lease.
This condition is important for prospective franchisees to consider, especially if they are looking at purchasing an existing Checkers location. The sublease administrative fee could add a significant cost to the operation of the franchise, and franchisees should factor this into their financial planning. It is also important to note that this fee is not always charged, but it is within Checkers's right to do so under the conditions described.