What is the method of payment for the Asset Transfer Fee for a Checkersrallys Conversion Restaurant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of expenditure | Amount | Method of payment | When Due | To whom payment is to be made |
|---|---|---|---|---|
| Initial Franchise Fee (See Note 1) | $20,000 - $30,000 | Lump sum | At time of signing the Franchise Agreement. | Us |
| Initial Advertising Deposit | $15,000 | Lump sum | When you begin construction at the Premises | National Production Fund |
| Asset Transfer Fee | $0 - $10,000 | Lump Sum | At time of signing the Franchise Agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–39)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, the asset transfer fee, which ranges from $0 to $10,000, is payable as a lump sum. This fee is due at the time of signing the Franchise Agreement and is paid directly to Checkersrallys. This information is detailed within the estimated initial investment breakdown.
For a prospective Checkersrallys franchisee, this means that if you are converting an existing restaurant to a Checkersrallys location, you should be prepared to pay the asset transfer fee upfront as part of your initial investment. The fee compensates Checkersrallys for the transfer of assets and goodwill associated with the existing location. It's important to note that this fee is in addition to the initial franchise fee, which also needs to be paid at the time of signing the agreement.
Understanding the payment terms and schedule for all initial fees is crucial for managing your startup costs effectively. The lump sum payment method means you'll need to have the funds readily available when you sign the franchise agreement. This requirement is fairly standard in the franchise industry, as it ensures the franchisor receives the necessary capital to support the new franchisee's launch. Therefore, a prospective franchisee should carefully review the financial requirements and plan accordingly to ensure they have sufficient funds to cover all initial fees and expenses.