What is the maximum sublease administrative fee that Checkersrallys may charge, and how is it calculated?

According to Checkersrallys's 2025 Franchise Disclosure Document, if a franchisee is buying an existing Checkersrallys Restaurant from Checkersrallys or its affiliate and Checkersrallys agrees to sublease the premises while remaining on the master lease, Checkersrallys may charge a sublease administrative fee. This fee can be up to 10% of the rent that remains due under the current lease term. This fee is in consideration for Checkersrallys remaining a guarantor on the lease.

For a prospective franchisee, this means that if they are acquiring an existing Checkersrallys location and Checkersrallys is subleasing the property to them, they may incur this additional fee. The fee is calculated based on the remaining rent owed on the lease, so the shorter the remaining lease term, the lower the potential fee.

It is important for potential franchisees to understand this fee and factor it into their financial projections when considering the purchase of an existing Checkersrallys restaurant. Franchisees should carefully review the terms of the sublease agreement and understand the remaining rent due under the lease to accurately estimate the potential sublease administrative fee. This fee is not applicable to new Checkersrallys restaurants.