When is the Delivery Administration Fee due for a Checkersrallys franchise?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
rement. | | COLUMN 1 | COLUMN 2 | COLUMN 3 | COLUMN 4 | | TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (See Note 1) | |-----------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Local Advertising Fee (see Notes 5 and 6) | The difference between the current NPF contribution rate and 4.5% of your Net Sales. | Must be spent on advertising and promotion during each of your fiscal quarters. | If your Franchised Restaurant is located in a geographical area where we have not established an advertising cooperative, then, we may require you contribute to an advertising purchasing collective that we establish and control. | | Delivery Administration Fee | 2% of the total price charged to a customer that orders certain approved food, beverage and other items ("Delivered Products") from a third-party delivery service provider approved by us (each a "DSP"). | Bi-monthly. | Payable only if you are eligible to provide delivery services, elect to provide delivery and enter into the delivery services participation agreement (the "Delivery Program"). See Note 7. | | Order Ahead Program Administration Fee | 2% of the total price charged to a customer that orders certain approved food, beverage and other items (the "Order Ahead Products") from our optional "Order Ahead Program." | Bi-monthly.
Source: Item 6 — OTHER FEES (FDD pages 21–29)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the Delivery Administration Fee is due bi-monthly. This fee is 2% of the total price charged to a customer for delivered products from a third-party delivery service provider approved by Checkersrallys.
This fee is only payable if the franchisee is eligible to provide delivery services, elects to provide delivery, and enters into the delivery services participation agreement, which Checkersrallys refers to as the "Delivery Program".
For a prospective Checkersrallys franchisee, this means that if they choose to participate in the Delivery Program, they will need to remit 2% of all delivery sales to Checkersrallys every two months. This fee covers Checkersrallys's administration of the delivery program and their negotiations with the third-party delivery service providers. Franchisees should factor this ongoing cost into their financial projections if they plan to offer delivery services.