Does Checkersrallys offer an incentive program specifically for existing franchisees, as detailed in the Existing Franchisee Incentive Addendum?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| between | CHECKERS | DRIVE-IN | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| RESTAURANTS, INC., a Delaware corporation ("Franchisor," "we," "our," or "us"), and | ||||||||||
| ("you" or "your" or "Franchisee"). We and you may each | be referred to as a "Party," or collectively, the "Parties. |
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys does offer an incentive program for existing franchisees through the "Existing Franchisee Incentive Addendum to Franchise Agreement." This incentive reduces the initial franchise fee by $10,000 if the franchisee opens their restaurant within one year of signing the Franchise Agreement. To qualify, the franchisee must already operate at least two Checkersrallys restaurants under separate franchise agreements.
The addendum modifies the original Franchise Agreement, and in case of conflict, the addendum prevails. To qualify for the incentive, franchisees must be in good standing with Checkersrallys and develop the restaurant according to the franchisor's prescribed plans and specifications. The franchisee must also provide supporting documentation to confirm their eligibility.
This incentive program aims to encourage existing Checkersrallys franchisees to expand their operations. By reducing the initial franchise fee, Checkersrallys lowers the financial barrier for existing franchisees to open additional locations. However, franchisees should be aware that they must open the new restaurant within one year of signing the agreement to receive the $10,000 reduction. This conditionality encourages swift action and efficient development.
The Existing Franchisee Incentive Addendum does not grant any territorial protection or exclusivity for the new restaurant. Checkersrallys retains full rights regarding the brand, system, and sale of products and services. The addendum, along with the Franchise Agreement, constitutes the entire agreement between the parties and can only be modified in writing. The document also allows for electronic signatures, streamlining the execution process.