Besides the initial franchise fee, what other fee is required when purchasing a company-owned Checkersrallys restaurant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
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We may offer for sale, and sell as franchises, some company-owned Checkers Restaurants or Rally's Restaurants in certain geographic areas. In connection with these franchise transactions, we may retain franchise or business brokers to negotiate with a prospective franchisee to reach mutually acceptable terms of a separate sale of assets agreement and any sale, lease or sublease of the real estate. In addition, a Franchise Agreement for the purchased restaurant(s) will have to be signed (which, in addition to the normal initial franchise fee, will require payment of a $10,000 asset transfer fee – See Item 5) and, possibly, also a Development Agreement for the further development of Checkers Restaurants or Rally's Restaurants in the geographical area where the purchased restaurant(s) is/are located. Depending on the circumstances, we also may vary the financial and other terms of our Franchise Agreement and Development Agreement in connection with the sale of company-owned Checkers Restaurants or Rally's Re
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–14)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, in addition to the initial franchise fee, a $10,000 asset transfer fee is required when purchasing a company-owned Checkersrallys restaurant. This fee is detailed in Item 5 of the FDD.
This asset transfer fee is specifically associated with the purchase of existing company-owned restaurants that Checkersrallys may offer for sale as franchises in certain geographic areas. The FDD also states that a Franchise Agreement for the purchased restaurant(s) will have to be signed. Depending on the circumstances, a Development Agreement for further development in the area may also be required.
Prospective franchisees should note that the financial and other terms of the Franchise Agreement and Development Agreement may vary when purchasing a company-owned Checkersrallys restaurant. It is important to carefully review Item 5 of the FDD and discuss all fees and terms with Checkersrallys to fully understand the financial obligations involved in purchasing a company-owned restaurant.