How often are retail royalties payable to Checkersrallys, and within what timeframe?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company earns retail royalty fees based on a contract for the sale of licensed products, including the Famous Seasoned Fries© at retail outlets. The performance obligation is satisfied as sales in the retail outlets are made, royalties are payable monthly within 30 days, and vary with retail sales volume.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, retail royalties are paid monthly and are due within 30 days. These royalties are based on a contract for the sale of licensed products, including the Famous Seasoned Fries©, at retail outlets. The royalty obligation is satisfied when sales are made in the retail outlets.
This means that if you, as a Checkersrallys franchisee, sell licensed products at retail outlets, you must remit royalties to Checkersrallys on a monthly basis. The amount you owe is determined by your retail sales volume, and payment is expected within 30 days of the billing date.
It is important to note that the royalty rates may vary based on restaurant qualifications under certain development or reimaging programs. Franchise restaurant royalties are earned when the franchise delivers food to their customer or to a third-party delivery partner. The Company generally bills royalties bi-monthly or bi-weekly to franchise customers and the payment is due within 10 days of the billing. Franchisees should clarify with Checkersrallys the specific royalty rate applicable to their situation and ensure they understand the payment terms to avoid any late fees or penalties.