What are the conditions under which Checkersrallys will reduce the initial franchise fee by fifty percent?

According to Checkersrallys's 2025 Franchise Disclosure Document, a reduction of the initial franchise fee by fifty percent is contingent upon specific criteria related to restaurant openings and reimaging. To qualify for this reduction, a franchisee must meet the conditions outlined in section 3(a) of the franchise agreement. These conditions include opening the franchised restaurant to the general public within 18 months of signing the Franchise Agreement, ensuring the restaurant complies with the current reimaging requirements, and maintaining a 'Restaurant Net Positive' status at the time of opening. 'Restaurant Net Positive' means that the total number of restaurants operated by the franchisee, their owners, or their affiliates must be greater than the number operated as of December 30, 2024.

If these initial conditions are met, Checkersrallys will then reduce the initial franchise fee by 50% for the third and subsequent restaurants opened. However, there are additional stipulations. The franchisee must open three or more restaurants that comply with the then-current reimaging requirements to the general public within 18 months of signing the applicable franchise agreement. Furthermore, all of these openings must occur by December 31, 2026, to qualify for the reduced franchise fee.

It's important to note that Checkersrallys retains the right to revoke this fee reduction under certain circumstances. Specifically, if the franchisee breaches, fails to satisfy, or is later found to have violated any of the criteria listed in Section 2 of the addendum, Checkersrallys can demand repayment of the reduced fee. This repayment must be made within thirty days of written notice from Checkersrallys. This clause underscores the importance of adhering to all requirements and maintaining compliance throughout the term of the franchise agreement to avoid financial penalties.