What is the deadline to open a Checkersrallys restaurant to qualify for the royalty fee abatement?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
evant supporting documentation, that: (a) you are a current franchisee in good standing with us, including being in full compliance with all currently effective agreements with us or our affiliates; and (b) you will develop the Franchised Restaurant in accordance with our current prescribed plans, specifications and design model for Restaurants (including,
without limitation, any modifications or adjustments we authorize and timely introduce for similarly-situated Restaurants, or otherwise incorporate into the System for all franchisees, before you open the Franchised Restaurant).
3. Conditional Development Incentive and Reduced Fee(s).
- a. Royalty Fee Abatement: If you meet the following criteria: (i) you open the Franchised Restaurant to the general public within 18 months of signing the Franchise Agreement; (ii) the Franchised Restaurant complies with the current reimaging requirements and (iii) you, your owners, or your and their affiliates are Restaurant Net Positive (defined below) at the time the Franchised Restaurant opens, then we will waive the
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee must open their restaurant to the general public within 18 months of signing the Franchise Agreement to qualify for a royalty fee abatement. This abatement waives the royalty fee, typically 4% of Net Sales, until the total value of the waived fees reaches $75,000 or the restaurant has operated for 24 months, whichever comes first.
To qualify for the royalty fee abatement, the Checkersrallys restaurant must also comply with current reimaging requirements. Additionally, the franchisee, their owners, or their affiliates must be "Restaurant Net Positive" at the time of opening. This means that the total number of restaurants they operate must be greater than the number they operated as of December 30, 2024.
If a Checkersrallys franchisee fails to meet these criteria, they will be required to pay back the amount or value of any fee reduction, discount, or other benefit they received. This repayment must be made within 30 days of written notice from Checkersrallys. This condition underscores the importance of meeting all requirements to maintain the benefits of the incentive program.