What is the Checkersrallys renewal fee if the successor franchise term is 20 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 and is capped at 50% of the then-current standard initial franchise fee. If a Checkersrallys franchisee chooses a successor franchise term of 20 years, the renewal fee will be 50% of the then-current initial franchise fee for a new restaurant. This fee is payable upon signing the new franchise agreement.
This means that when a franchisee's initial term is expiring, they have the option to renew their franchise agreement for another term. The length of this new term affects the renewal fee they will be charged. A longer renewal term, such as 20 years, results in a higher renewal fee (50% of the then-current initial franchise fee).
It is important to note that the renewal fee is based on the initial franchise fee at the time of renewal, not the initial fee paid for the original franchise agreement. This fee could be higher or lower than what the franchisee initially paid. The initial franchise fee can be found in Item 5 of the Checkersrallys FDD. Franchisees should consider the length of the renewal term and the potential renewal fee when deciding whether to renew their franchise agreement.