When are Checkersrallys royalty fees due?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.02 Royalty Fees.You agree to pay us royalty fees of four percent (4%) of Net Sales, payable on or before the fifth (5th) and twentieth (20th) days of each calendar month with respect to the Net Sales accrued during the most recently ended Bi-weekly Period before the payment date.
- 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 insufficient funds), you must pay us, on demand, a processing fee of Two Hundred Fifty Dollars ($250). If there are insufficient funds in your bank account, or if your check is returned for insufficient funds, then we may require you to make all subsequent payments to us by certified check. However, your failure to pay all amounts when due constitutes grounds for termination of this Agreement, as provided in Section 14.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, royalty fees are due on or before the fifth and twentieth day of each calendar month. These payments are based on four percent of Net Sales accrued during the bi-weekly period preceding the payment date.
Checkersrallys may request that franchisees sign an electronic payment authorization agreement allowing them to automatically debit the franchisee's bank account for royalty fees and other amounts owed. If a franchisee's account has insufficient funds to cover the owed amounts, Checkersrallys may require a processing fee of $250. Furthermore, Checkersrallys may demand that subsequent payments be made via certified check.
It is important to note that failure to pay all amounts when due constitutes grounds for termination of the Franchise Agreement. Franchisees should ensure they understand the payment schedule and maintain sufficient funds to avoid penalties or termination.