For the Checkersrallys 2025 Growth Incentive, what is the definition of 'Restaurant Net Positive'?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
You will qualify for a 50% reduced initial franchise fee for your third and subsequent Restaurants if you meet the following criteria: (i) by December 31, 2025, you sign franchise agreements for and, within 18 months of signing the applicable franchise agreement you open to the general public, 3 or more Restaurants that comply with the then-current reimaging requirements; and (ii) you, your owners, or your and their affiliates are Restaurant Net Positive (defined below). "Restaurant Net Positive" means that the total number of Restaurants operated by you, your owners, or your and their affiliates at the time you open each Restaurant is greater than the number of Restaurants operated by you, your owners, or your and their affiliates as of December 30, 2024. In order to receive the benefit of a reduced initial franchise fee for your third and subsequent Restaurants (and other benefits described in Item 6), you must sign our required form of 2025 Growth Incentive Addendum to the Franchise Agreement (attached as Exhibit B-2 to this Franchise Disclosure Document).
Source: Item 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the "Restaurant Net Positive" definition is tied to the 2025 Growth Incentive program. This incentive offers a 50% reduction in the initial franchise fee for a franchisee's third and subsequent restaurants, provided they meet specific criteria. One of these criteria is being 'Restaurant Net Positive.'
'Restaurant Net Positive' means that the total number of restaurants operated by the franchisee, their owners, or their affiliates at the time of opening each new restaurant must be greater than the number of restaurants they operated as of December 30, 2024. Essentially, to qualify for the incentive, the franchisee must be expanding their Checkersrallys business rather than simply replacing existing locations.
For a prospective Checkersrallys franchisee, this means that to take advantage of the 50% reduced initial franchise fee for their third and subsequent locations under the 2025 Growth Incentive, they need to demonstrate a net increase in the number of restaurants they operate compared to their restaurant count on December 30, 2024. This encourages growth within the Checkersrallys system and rewards franchisees who are actively expanding their operations. To formally receive this benefit, the franchisee must also sign the 2025 Growth Incentive Addendum to the Franchise Agreement.