According to Checkersrallys's 2025 Franchise Disclosure Document, if a franchisee requests and Checkersrallys approves a transfer of the franchise agreement before the restaurant opens, and the initial franchise fee was previously reduced or waived, the franchisee must pay the full standard amount of the initial franchise fee. This amount is calculated as it was measured on the effective date of the Franchise Agreement. This payment is a pre-closing condition of the transfer, in addition to any other transfer fees that may be applicable.

This policy means that any initial incentive to reduce the initial franchise fee is contingent upon the franchisee actually opening and operating the restaurant. If the franchisee chooses to transfer the franchise before opening, Checkersrallys rescinds the initial fee reduction or waiver. This protects Checkersrallys from franchisees who might try to obtain a reduced fee with the intention of quickly transferring the franchise to another party.

For a prospective Checkersrallys franchisee, this condition highlights the importance of carefully considering their commitment to opening and operating the franchise before seeking any fee reductions or waivers. If there's a significant chance they may want to transfer the franchise before opening, they should factor in the potential cost of repaying the waived or reduced initial franchise fee. This could significantly impact the financial feasibility of transferring the franchise early on.

It is important to note that this policy is outlined in an addendum to the franchise agreement, emphasizing that it is a specific condition that modifies the standard terms. Franchisees should carefully review all addenda and understand how they affect their rights and obligations under the franchise agreement.