What happens if the Checkersrallys initial franchise fee is not paid before the restaurant opens?

According to Checkersrallys's 2025 Franchise Disclosure Document, if a franchisee fails to pay the initial franchise fee before opening their restaurant, the amount of the initial franchise fee will increase by $500 per day, starting from the opening date, until the full amount is received. This includes all cumulative daily increases that have accrued since the opening date.

Checkersrallys specifies that these daily increases are not interest charges, time-price differentials, or penalties for an overdue payment. Instead, they are intended to compensate Checkersrallys for the expenses incurred, including administrative and collection efforts related to the unpaid fee. This means that a franchisee opening a location without paying the initial franchise fee will quickly accrue a significant debt beyond the initial fee itself.

For a prospective Checkersrallys franchisee, this highlights the importance of ensuring all initial fees are paid on time to avoid substantial additional costs. The standard initial franchise fee is $30,000, but this can be reduced to $15,000 for Non-Traditional Sites. There are also incentive programs that could reduce the fee, including programs for veterans and women business owners, where the fee could be reduced to $0. However, regardless of any potential reductions or incentives, failure to pay the agreed-upon fee before opening will result in a $500 daily increase, making prompt payment crucial.