What is the due date for the royalty fee payments for a Checkersrallys franchise?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (See Note 1) |
|---|---|---|---|
| Royalty | 4% of your Net Sales | Semi-monthly, | Net Sales is defined in Note 2 |
| or 2% of your Net | on or before the | below. See Note 2 for the | |
| Sales if you operate a | 5th and 20th | 2025 Growth Incentive | |
| Restaurant from a | day of each | Program and Reimage | |
| Non-Traditional Site. | month. | Incentive Program. |
Source: Item 6 — OTHER FEES (FDD pages 21–29)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the royalty fee is due semi-monthly, specifically on or before the 5th and 20th day of each month. The standard royalty fee is 4% of Net Sales. However, if a franchisee operates a restaurant from a Non-Traditional Site, the royalty fee is reduced to 2% of Net Sales.
Checkersrallys also offers a 2025 Growth Incentive program where the royalty fee may be waived under certain conditions. To qualify, a franchisee must sign a Franchise Agreement by December 30, 2025, open the restaurant within 18 months, comply with reimaging requirements, and be Restaurant Net Positive at the time of opening. If these conditions are met, Checkersrallys will waive the royalty fee until the royalty fee abatement equals $75,000 or the restaurant has operated for 24 months, whichever comes first.
Additionally, Checkersrallys provides a 2025 Reimage Incentive. Franchisees signing a franchise agreement by June 30, 2025, and completing a full reimage by December 30, 2025, may qualify for a reduced royalty fee of 2% of Net Sales for the first twelve months of operation following the reimage. After this period, the royalty fee will revert to the standard 4% of Net Sales. To be eligible for either incentive program, franchisees must sign the required addendum to the Franchise Agreement.