What is the maximum duration of the royalty fee abatement offered by Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
evant supporting documentation, that: (a) you are a current franchisee in good standing with us, including being in full compliance with all currently effective agreements with us or our affiliates; and (b) you will develop the Franchised Restaurant in accordance with our current prescribed plans, specifications and design model for Restaurants (including,
without limitation, any modifications or adjustments we authorize and timely introduce for similarly-situated Restaurants, or otherwise incorporate into the System for all franchisees, before you open the Franchised Restaurant).
3. Conditional Development Incentive and Reduced Fee(s).
- a. Royalty Fee Abatement: If you meet the following criteria: (i) you open the Franchised Restaurant to the general public within 18 months of signing the Franchise Agreement; (ii) the Franchised Restaurant complies with the current reimaging requirements and (iii) you, your owners, or your and their affiliates are Restaurant Net Positive (defined below) at the time the Franchised Restaurant opens, then we will waive the royalty fee payable under the Franchise Agreement until the earlier of: (a) the total value of the royalty fee abatement (calculated based
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a new franchisee may be eligible for a royalty fee abatement under certain conditions. This abatement allows for the waiver of royalty fees, but it is limited in both value and duration.
The maximum duration of the royalty fee abatement is twenty-four months from the date the franchised restaurant begins operations. However, the abatement will end sooner if the total value of the waived royalty fees reaches $75,000. The calculation of the waived fees is based on the standard royalty fee due under the Franchise Agreement.
To qualify for this incentive, the franchisee must open the restaurant within 18 months of signing the Franchise Agreement, comply with current reimaging requirements, and be "Restaurant Net Positive" at the time of opening. "Restaurant Net Positive" means that the total number of restaurants operated by the franchisee, their owners, or their affiliates must be greater than the number operated as of December 30, 2024. If a franchisee fails to meet these criteria or breaches the agreement, Checkersrallys can require them to pay back the value of any fee reduction or discount received.