Under what conditions is the Delivery Administration Fee payable for a Checkers franchise?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
assistance you request. |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (See Note 1) | |-------------------------------------------------------------|-----------------------------------------------|------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Fees to Evaluate and Approve Alternative Suppliers | Currently, only out-of-pocket expenses. | Upon receipt of our bill. | We may impose reasonable inspections and supervision fees to cover our costs in evaluating alternative approved brands or suppliers you suggest. | | Extension Fee | $5,000 | As incurred. | You will pay this amount if we grant you a one-time extension to either locate, secure or develop a site acceptable to us for the Franchised Restaurant. | | Rent | Varies by site being sublet | Monthly | You will only pay this amount if we sublease the Premises of your Franchised Restaurant to you. If we sublease the Premises, you may pay rent directly to the landlord or to us. If you pay rent to us, we may charge an amount that is higher than the rent due under the underlying lease. | | Audit | Cost of audit | Upon receipt of our bill. | Payable only if you fail to furnish required information or if we find an understatement of Net Sales greater than 2%. | | Insurance | Varies, cost of coverage obtained | As incurred | If you fail to obtain the required insurance coverage for the Franchised Restaurant, we may obtain such coverage at your expense. | | Maintenance Costs | Varies, actual costs | As incurred | If you fail or refuse to maintain the Franchised Restaurant as required, we have the right to do so on your behalf and at your expense. |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (See Note 1) |
|---|---|---|---|
| Attorneys' Fees and other costs | Varies, actual fees and costs incurred | As incurred | Payable if you fail to comply with the Franchise Agreement of if we are joined in a lawsuit that is based on your operation of a restaurant. |
| Indemnification | Varies, actual losses and expenses incurred | As incurred | You must reimburse us for our losses and expenses as a result of third party claims arising from your failures or breaches under the Franchise Agreement, your operation of the Franchised Restaurant, and any unauthorized acts. |
| Early Termination | Varies, see Note 9 for | As incurred | (See Note 9) |
| Damages | calculation | ||
| Costs to De Identify the Premises upon Termination or Expiration | Varies, actual losses and expenses | As incurred | You must reimburse us for our losses and expenses if you fail to de-identify and remove signage from the Franchised Restaurant following the termination or expiration of the Franchise Agreement, and our personnel is required to do so. |
NOTE 1: Except for the minimum advertising requirement and fees payable to the regional or local advertising cooperatives and NPF, all fees are payable to Checkers. All fees are nonrefundable. Except as noted in this Item 6 and fees payable to the NPF, all fees currently are uniformly imposed.
NOTE 2: The term "Net Sales" means all revenue derived from operating the Franchised Restaurant, including the aggregate of all sales amounts from food, beverages and other products sold and services rendered at the Premises or otherwise rendered in connection with your Franchised Restaurant, and all monies derived from sales at or away from the Franchised Restaurant, whether from cash, check, credit or debit card, barter exchange, trade credit, or other credit transactions, but: (1) excluding all federal, state or municipal sales, use or service taxes collected from customers and paid to the appropriate taxing authority; and (2) reduced by the amount of any documented refunds, credits, allowances, adjustments, promotional discounts, and charge-backs the Franchised Restaurant provides to customers in good faith.
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.
Source: Item 6 — OTHER FEES (FDD pages 21–30)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the Delivery Administration Fee is payable if a franchisee is eligible to provide delivery services, elects to provide delivery, and enters into the delivery services participation agreement, also known as the "Delivery Program".
The Delivery Administration Fee is 2% of the total price charged to a customer who orders approved food, beverage, and other items, referred to as "Delivered Products," from a third-party delivery service provider approved by Checkers, each designated as a "DSP". This fee is due bi-monthly.
Checkers negotiates all the terms and conditions with the DSPs. Franchisees are required to execute and comply with all applicable agreements that Checkers negotiates with any DSP. The Delivery Program is optional, allowing franchisees to offer delivered products through one or more DSPs to customers within specific radii and zones, each a "Delivery Area," during hours of operation established exclusively by each DSP.