Is the initial franchise fee for Checkersrallys refundable?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
The initial franchise fee is fully earned by us on the effective date of the franchise agreement and is non-refundable, except that we may provide you a refund of 50% of the initial franchise fee if: (a) you (i) are unable to obtain a site acceptable to us within the Designated Area for the Franchised Restaurant within 180 days after the effective date of the franchise agreement, or (ii) despite having expended good faith best efforts (as we determine in our sole judgment), have not obtained all necessary permits, licenses, or other regulatory or municipal approvals to be able to open the Franchised Restaurant according to applicable law within 60 days after you sign the proposed lease, sublease, or purchase agreement for the location of the Franchised Restaurant; and (b) you and your owners execute general releases, in form and substance satisfactory to us, of any and all claims against us, and our affiliates, officers, directors, employees, agents, successors and assigns.
Source: Item 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the initial franchise fee is generally non-refundable. However, there is a specific circumstance where a franchisee may receive a partial refund.
The initial franchise fee is fully earned by Checkersrallys on the effective date of the franchise agreement. A franchisee may be eligible for a refund of 50% of the initial franchise fee if they are unable to secure a site acceptable to Checkersrallys within 180 days of the franchise agreement's effective date, or if, despite best efforts, they cannot obtain the necessary permits and approvals to open the restaurant within 60 days after signing the lease or purchase agreement.
To receive this partial refund, the franchisee and their owners must execute general releases of all claims against Checkersrallys and its affiliates. This means the franchisee gives up any right to sue Checkersrallys. This condition protects Checkersrallys from potential legal action if the franchisee is unable to open their restaurant.
It is important for prospective Checkersrallys franchisees to understand the conditions under which a refund may be possible, as the initial franchise fee represents a significant upfront investment. Franchisees should also be aware of the requirement to execute a release of claims, which could impact their legal rights.