According to Checkersrallys's 2025 Franchise Disclosure Document, if a franchisee requests and Checkersrallys approves a transfer before the Franchised Restaurant opens, as per Section 13 of the Franchise Agreement, the franchisee must pay the amount of the Initial Fee Reduction prior to the transfer, in addition to any transfer fee payable. This condition applies before the restaurant's opening.

This means that if Checkersrallys granted the franchisee a reduction on the initial franchise fee, that reduction must be repaid to Checkersrallys before the franchise can be transferred to a new owner. This ensures Checkersrallys recovers the initial investment incentive they provided to the original franchisee.

This policy could impact a franchisee's decision to sell the franchise before it opens, as they would need to factor in the repayment of the initial fee reduction into the sale price. Prospective franchisees should be aware of this condition and understand the implications for early transfer scenarios. It is important to note that this repayment is in addition to any other transfer fees that may apply.