What are the requirements for executing releases to receive a refund of the Checkersrallys initial franchise fee?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
The initial franchise fee is fully earned by us on the effective date of the franchise agreement and is non-refundable, except that we may provide you a refund of 50% of the initial franchise fee if: (a) you (i) are unable to obtain a site acceptable to us within the Designated Area for the Franchised Restaurant within 180 days after the effective date of the franchise agreement, or (ii) despite having expended good faith best efforts (as we determine in our sole judgment), have not obtained all necessary permits, licenses, or other regulatory or municipal approvals to be able to open the Franchised Restaurant according to applicable law within 60 days after you sign the proposed lease, sublease, or purchase agreement for the location of the Franchised Restaurant; and (b) you and your owners execute general releases, in form and substance satisfactory to us, of any and all claims against us, and our affiliates, officers, directors, employees, agents, successors and assigns.
Source: Item 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee may be eligible for a refund of 50% of the initial franchise fee under specific conditions. To qualify for this refund, the franchisee must meet two primary requirements.
First, the franchisee must demonstrate an inability to secure a suitable site for the franchised restaurant within 180 days from the effective date of the franchise agreement. Alternatively, the franchisee can qualify if, despite their best efforts, they fail to obtain all necessary permits, licenses, or other regulatory approvals to open the restaurant within 60 days after signing the lease, sublease, or purchase agreement for the location. Checkersrallys retains sole judgment in determining whether the franchisee has demonstrated good faith best efforts.
Second, both the franchisee and their owners must execute general releases. These releases must be in a form and substance that is satisfactory to Checkersrallys. The releases must waive any and all claims against Checkersrallys, its affiliates, officers, directors, employees, agents, successors, and assigns. Meeting both the site/permit criteria and executing the required releases are necessary to potentially receive the 50% refund of the initial franchise fee.