When is the Checkersrallys development fee considered earned, and under what circumstances is it refundable?

According to Checkersrallys's 2025 Franchise Disclosure Document, the development fee is generally non-refundable and is deemed earned when paid. Specifically, the development fee is Ten Thousand Dollars ($10,000) for each restaurant to be developed under the agreement for which an initial franchise fee is due. This fee compensates Checkersrallys for granting the franchisee the rights to develop multiple locations within a specific area.

This non-refundable policy means that even if the franchisee fails to develop any of the restaurants contemplated in the agreement, they will not receive a refund of the development fee. However, for each franchise agreement the franchisee enters into according to the development schedule, Checkersrallys will apply Ten Thousand Dollars ($10,000) of the development fee against the initial franchise fee due under that franchise agreement until the development fee is fully applied.

There is one exception to the non-refundability of the development fee. Checkersrallys will refund the unapplied portion of the development fee paid pursuant to Section 2.01 in the event of a termination pursuant to Section 8.02(g). It is important for a prospective franchisee to review sections 2.01 and 8.02(g) of the franchise agreement to fully understand the conditions under which a refund might be possible. This exception appears to be very limited, so franchisees should be prepared for the development fee to be non-refundable in most situations.