What is the processing fee charged by Checkersrallys for insufficient funds?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Sections 3.05 and 10.01), shall bear interest accruing as of their original due date at the maximum interest rate permitted by law, If there is no applicable legal maximum rate, interest will be calculated at the rate of four percent (4%) above the prime rate of interest on the first day of each month for the past due amount, as published in The Wall Street Journal.
- 6.05 Automatic Clearing House Agreement. You agree, at our request, to sign an electronic payment authorization agreement in a form we prescribe that authorizes us to automatically debit your bank account, on the dates payments are due, for any royalty fees, rents, the Initial Advertising Deposit and other amounts due and owing under this Agreement and any other agreements between you and us. You agree to ensure that funds are available in your bank account to cover our withdrawals. If there are insufficient funds in your bank account to cover any such amount owed (or, if you are paying by check and a check is returned for insuffic
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, if a franchisee's payment is returned due to insufficient funds, Checkersrallys will charge a processing fee. Specifically, if there are insufficient funds in the franchisee's bank account to cover any amount owed to Checkersrallys, or if a check is returned for insufficient funds, the franchisee must pay Checkersrallys, on demand, a processing fee of $250.
This fee is in addition to the original amount owed and any other late payment penalties that may apply. Checkersrallys also has the right to demand that all subsequent payments be made via certified check if a payment is returned for insufficient funds.
It is important to note that failure to pay all amounts when due, including this processing fee, constitutes grounds for termination of the Franchise Agreement. This highlights the importance of franchisees ensuring they have sufficient funds available to cover all payments to Checkersrallys to avoid penalties and potential termination of their franchise agreement.