Where in the Checkersrallys franchise agreement can I find details about Royalty Fees?

According to Checkersrallys's 2025 Franchise Disclosure Document, details regarding royalty fees can be found in Section 6.02 of the franchise agreement. The standard royalty fee is four percent (4%) of Net Sales. These fees are payable on or before the fifth and twentieth day of each calendar month, covering Net Sales accrued during the bi-weekly period preceding the payment date.

However, the FDD also outlines some exceptions to the standard royalty fee. For franchisees operating from a Non-Traditional Site, Section 6.02 is revised, and the royalty fee is reduced to two percent (2%) of Net Sales. Additionally, Checkersrallys may offer a royalty fee abatement under certain conditions. If a franchisee opens their restaurant within 18 months of signing the Franchise Agreement, complies with reimaging requirements, and meets the "Restaurant Net Positive" criteria, Checkersrallys will waive the royalty fee until the total value of the waived fees reaches $75,000 or the restaurant has operated for 24 months, whichever comes first.

The agreement also addresses late payments. All overdue amounts owed to Checkersrallys or its affiliates will accrue interest from the original due date at the maximum legal interest rate. If no legal maximum exists, the interest rate will be four percent (4%) above the prime rate published in The Wall Street Journal. Checkersrallys also requires franchisees to sign an electronic payment authorization allowing them to automatically debit the franchisee's bank account for royalty fees and other amounts due. Insufficient funds will result in a $250 processing fee, and Checkersrallys may require subsequent payments to be made via certified check. Failure to pay amounts when due can lead to termination of the agreement.