What is the Checkersrallys renewal fee if the successor franchise term is 10 years?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (See Note 1) |
|---|---|---|---|
| Renewal Fee | Up to 50% of then current standard initial franchise fee, depending on the length of your successor franchise term. | Upon signing the new franchise agreement. | If your successor franchise term is 10 years, the renewal fee is 33.33% of the then current initial franchise fee for a new Restaurant; if your successor franchise term is 20 years, the renewal fee is 50% of the then-current initial franchise fee. |
Source: Item 6 — OTHER FEES (FDD pages 21–29)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the renewal fee is dependent on the length of the successor franchise term. If a franchisee chooses a successor franchise term of 10 years, the renewal fee is 33.33% of the then-current initial franchise fee for a new restaurant. This fee is payable upon signing the new franchise agreement.
In practical terms, this means that a Checkersrallys franchisee seeking to renew their franchise for another 10 years will need to pay approximately one-third of the initial franchise fee that new franchisees are currently paying. The initial franchise fee can vary, so the exact dollar amount will depend on what Checkersrallys is charging new franchisees at the time of renewal. For example, if the initial franchise fee is $30,000 at the time of renewal, the renewal fee would be $9,999.
It's important for prospective franchisees to understand that the renewal fee is based on the then-current initial franchise fee, which may be higher or lower than the initial fee the franchisee originally paid. Franchisees should factor in the potential cost of renewal when evaluating the long-term financial viability of a Checkersrallys franchise. Also, the FDD states that the renewal fee is due upon signing the new franchise agreement, so franchisees should be prepared to pay this amount upfront.