What is the reduced initial franchise fee offered to existing Checkersrallys franchisees who qualify for the incentive?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
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Existing Franchisee Incentive
If you are an existing franchisee of at least two Checkers Restaurants or Rally's Restaurants and you are in good standing and full compliance with all current agreements with us or our affiliates, and you sign a Franchise Agreement for, and open to our satisfaction, a new Franchised Restaurant within 18 months of signing the Franchise Agreement, then we offer a $10,000 reduction to the amount of our standard initial franchise fee (currently $30,000) payable for the new Franchised Restaurant. In order to receive the benefit of a reduced initial franchise fee of $20,000, you must sign our required form of Existing
Franchisee Incentive Addendum to the Franchise Agreement (attached as Exh
Source: Item 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, existing franchisees who meet specific criteria can benefit from a reduced initial franchise fee. If a franchisee already operates at least two Checkers Restaurants or Rally's Restaurants, maintains good standing, and complies with all current agreements with Checkersrallys or its affiliates, they are eligible for this incentive. To qualify, the franchisee must sign a Franchise Agreement and open a new Franchised Restaurant to Checkersrallys's satisfaction within 18 months of signing the Franchise Agreement.
If these conditions are met, Checkersrallys offers a $10,000 reduction to the standard initial franchise fee, which is currently $30,000. This reduces the initial franchise fee to $20,000 for the new Franchised Restaurant. To formally receive this reduced fee, the franchisee must sign the required Existing Franchisee Incentive Addendum to the Franchise Agreement, which is attached as Exhibit B-1 to the Franchise Disclosure Document.
This incentive is designed to encourage existing, successful franchisees to expand their operations. By reducing the initial financial burden, Checkersrallys aims to make it more attractive for current franchisees to reinvest in the brand. However, it's crucial for franchisees to ensure they meet all the specified criteria and adhere to the required timelines to qualify for the reduced fee. Failing to comply with these conditions could result in the franchisee having to pay the full initial franchise fee of $30,000.