By how much is the Initial Franchise Fee reduced for a Checkersrallys restaurant operating from a Non-Traditional Site?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
tions," "Subsections," and/or "Exhibits" shall mean the applicable Section(s), Subsection(s), and/or Exhibit(s) of the Franchise Agreement, unless specified otherwise below. The Recitals above are incorporated into this Addendum by reference.
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- Qualifications. You represent, and in connection with signing this Addendum have provided us (or agree to provide promptly upon our request) relevant supporting documentation, that: (a) you are authorized, or
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the initial franchise fee is reduced for restaurants operating from a Non-Traditional Site. Specifically, Section 6.01 of the franchise agreement is revised to reflect a $15,000 reduction in the standard initial franchise fee. This reduction is referred to as the "Initial Fee Reduction".
This means that if a franchisee chooses to operate a Checkersrallys restaurant at a Non-Traditional Site, they will pay $15,000 less than the standard initial franchise fee typically required for a new restaurant. For example, if the standard initial franchise fee is $30,000, the fee for a Non-Traditional Site would be $15,000.
It is important to note that this reduction applies specifically to the initial franchise fee and does not affect other fees, such as the royalty fee, which is also modified for Non-Traditional Sites. The royalty fee is set at 2% of Net Sales for these locations. Prospective franchisees should carefully consider the implications of operating at a Non-Traditional Site, including the reduced fees and any specific conditions or requirements that may apply.