What is the maximum sublease administrative fee Checkersrallys charges if they sublease the premises to the franchisee?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.03 Sublease Administrative Fee. If we agree to sublease the Premises of your Franchised Restaurant to you and remain on the master lease, then we will charge you a sublease administrative fee of up to 10% of the rent that remains due under the then-current lease term in consideration of our remaining a guarantor on the lease.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, if Checkersrallys subleases the premises to the franchisee and remains on the master lease, they will 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 compensates Checkersrallys for remaining a guarantor on the lease. As a guarantor, Checkersrallys is responsible for the lease obligations if the franchisee defaults. The 10% fee is calculated on the remaining rent due for the entire lease term, not just a monthly fee.
For a prospective franchisee, this means that if Checkersrallys subleases the property, the franchisee will need to factor in this additional administrative fee. The actual percentage charged could be less than 10%, but it is important to be prepared for the maximum possible charge. This fee is in addition to the regular rent payments.