Under what conditions might a Checkers franchisee receive a refund of 50% of the initial franchise fee?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
The initial franchise fee (and asset transfer fee, if applicable) is fully earned by us as of the Effective Date and is non-refundable, except that we may provide you a refund of fifty percent (50%) of the initial franchise fee paid to us if: (a) you (i) are unable to obtain a site acceptable to us within the Designated Area for the Franchised Restaurant within the time period prescribed in Section 3.02, or (ii) despite having expended good faith best efforts (as we determine in our sole judgment), have not obtained all necessary permits, licenses, or other regulatory or municipal approvals to be able to open the Franchised Restaurant in accordance with applicable law within sixty (60) days after your execution of the proposed lease, sublease or purchase agreement for the Premises; and (b) you and your Owners execute general releases, in form and substance satisfactory to us, of any and all
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, a franchisee may be eligible for a refund of 50% of the initial franchise fee under specific circumstances. This refund is not automatic but is contingent upon certain conditions related to site selection and permitting.
Specifically, Checkers may provide a 50% refund of the initial franchise fee if the franchisee is unable to secure a site acceptable to Checkers within the designated area within the time period prescribed in Section 3.02 of the franchise agreement. Alternatively, a refund may be provided if, despite the franchisee's best efforts, they cannot obtain all necessary permits, licenses, or other regulatory or municipal approvals to open the franchised restaurant within 60 days after executing the proposed lease, sublease, or purchase agreement for the premises.
To receive this refund, the franchisee and their owners must execute general releases, in a form and substance satisfactory to Checkers, releasing any and all claims against Checkers, its affiliates, officers, directors, employees, agents, successors, and assigns. This indicates that the refund is tied to a complete settlement of any potential disputes between the franchisee and Checkers. This policy protects Checkers from future legal action related to the failed franchise opening.