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 full standard amount of the initial franchise fee that was previously reduced or waived. This payment is required as a pre-closing condition of the transfer, in addition to any applicable transfer fee. The initial franchise fee is measured on the effective date of the Franchise Agreement.

This condition means that any initial financial incentives Checkersrallys offered to the franchisee are rescinded if the franchisee seeks to transfer the franchise before launching the business. The franchisee essentially has to repay any discounts or waivers they received on the initial franchise fee. This policy likely aims to discourage franchisees from entering agreements with the intention of quickly flipping the franchise rights without developing the business.

For a prospective Checkersrallys franchisee, this highlights the importance of careful planning and commitment before signing the Franchise Agreement. Franchisees should be confident in their ability to open and operate the restaurant, as seeking an early transfer will negate any initial fee reductions. This could represent a significant unexpected cost, as the franchisee would need to have the capital to cover the initial fee reduction in order to complete the transfer.

It is important to note that the specific amount of the initial franchise fee, as well as any potential reductions or waivers, would be detailed elsewhere in the Franchise Disclosure Document or in the Franchise Agreement itself. Franchisees should carefully review these documents to understand the full financial implications of a potential transfer before opening.