According to Checkersrallys's 2025 Franchise Disclosure Document, if a franchisee requests a transfer before opening their restaurant and Checkersrallys approves it, the franchisee must pay the amount of the initial franchise fee reduction as a pre-closing condition, in addition to any transfer fee that is payable. This fee covers the amount that was initially reduced or waived from the standard initial franchise fee, as measured on the effective date of the Franchise Agreement.

This condition ensures that Checkersrallys recovers the financial benefit it initially provided to the franchisee if the franchisee decides to transfer the franchise rights before actually opening the restaurant. This policy is in place to prevent franchisees from taking advantage of reduced fees without fully committing to the development and operation of a Checkersrallys restaurant.

For a prospective Checkersrallys franchisee, this means that if they anticipate the possibility of transferring the franchise before opening, they should be aware of the potential obligation to repay the initial fee reduction. This could significantly impact the financial implications of transferring the franchise early on. Franchisees should carefully consider this condition and factor it into their decision-making process when requesting a transfer before the restaurant opens.