To whom is the Asset Transfer Fee paid for a Checkersrallys Modular Design Drive-Thru Restaurant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of expenditure | Amount | Method of payment | When Due | To whom payment is to be made |
|---|---|---|---|---|
| Initial Franchise Fee (See Note 1) | $20,000 - $30,000 | Lump sum | At time of signing the Franchise Agreement. | Us |
| Initial Advertising Deposit | $15,000 | Lump sum | When you begin construction at the Premises | NPF Inc. |
| Asset Transfer Fee | $0 - $10,000 | Lump Sum | At time of signing the Franchise Agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–39)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the asset transfer fee is paid to 'Us,' which refers to the franchisor, Checkersrallys itself. This fee ranges from $0 to $10,000 and is due at the time of signing the Franchise Agreement. This information is listed within the estimated initial investment breakdown.
This fee is specifically applicable when a franchisee purchases an existing company-owned Checkersrallys Restaurant. In addition to the initial franchise fee, the asset transfer fee compensates Checkersrallys for transferring the assets and goodwill associated with the existing restaurant to the new franchisee.
Prospective franchisees should note that the asset transfer fee is a component of the total initial investment, which varies depending on the restaurant format and other factors. Understanding this fee and to whom it is paid is crucial for accurately assessing the financial requirements of acquiring a Checkersrallys franchise.