If transferring multiple Checkersrallys restaurants, what is the transfer fee structure?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
staurants, or otherwise incorporate into the System for all franchisees) and to add or replace fixtures, furniture, equipment, signs and supplies in accordance with our then current requirements and specifications for Restaurants within the time period we specify following the effective date of the transfer (we will advise the transferee before the effective date of the transfer of the specific actions that it must take and the time period within which such actions must be taken);
- (i) you must ensure that we receive, before we will approve any proposed transferee to begin conducting business activities at the Franchised Restaurant as its authorized operator, a transfer fee equal to Twenty Thousand Dollars ($20,000) (or, if the proposed transferee is a then-current franchisee of a Restaurant, a transfer fee equal to Ten Thousand Dollars ($10,000)), provided, however, if this Agreement is being transferred as part of a transaction involving franchise agreements for multiple Restaurants and the franchise agreement for eac
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the transfer fee structure for multiple restaurants depends on whether the transferee is a new or existing franchisee. If a franchisee is transferring multiple restaurants on the same day, the transfer fee for the first restaurant is $20,000 if the transferee is a new franchisee, or $10,000 if the transferee is a current Checkersrallys franchisee. For each additional restaurant transferred in the same transaction, an additional $5,000 transfer fee is applied.
For example, if a current Checkersrallys franchisee acquires three additional restaurants from another franchisee in a single transaction, the transfer fee would be $10,000 for the first restaurant plus $5,000 for each of the two additional restaurants, totaling $20,000. If the transferee is a new franchisee, the transfer fee would be $20,000 for the first restaurant plus $5,000 for each additional restaurant.
This fee structure incentivizes current franchisees to expand their operations by acquiring existing locations, as the initial transfer fee is lower for them compared to new franchisees. Prospective franchisees should consider these transfer fees when evaluating the cost of acquiring existing Checkersrallys restaurants, especially when considering multi-unit acquisitions.