What is the standard initial franchise fee for a Checkersrallys restaurant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
chise Agreement**
Initial Franchise Fee
The standard initial franchise fee is $30,000. If we have approved the location of the Franchised Restaurant prior to signing the Franchise Agreement, then you must pay the full amount of the initial franchise fee when you sign the Franchise Agreement. If we and you have not agreed upon an approved location of the Franchised Restaurant before signing the Franchise Agreement, then the initial franchise fee is payable as follows: $10,000 on the date you sign the Franchise Agreement; and the remaining $20,000 within 30 days of our approval of the location of the Franchised Restaurant.
If you sign the Franchise Agreement in connection with a Development Agreement, then the applicable portion of the development fee you paid under the Development Agreement toward the Franchised Restaurant will be credited against the initial franchise fee payable and due to us under the Franchise Agreement, according to that Development Agreement's terms. If you sign the Franchise Agreement and a Non-Traditional Site Addendum to operate the Franchised Restaurant from a Non-Traditional Site, then the initial franchise fee will be reduced to $15,000 as discussed below. If you sign the Franchise Agreement as part of your independent purchase of (or receipt of transferred ownerships interests in) the Franchised Restaurant's assets from a third party owner, then you will not pay us an initial franchise fee, but you must ensure that we receive the full amount of the associated transfer fee due to us as a result of that transaction (by way of example only, see successor franchise fee under Item 6).
In addition, should you qualify (as we solely determine) for any incentive programs or other sales promotions we are then offering in connection with sales of new franchises, or accelerated openings of franchises not yet opened (as the case may be), then your initial franchise fee or other applicable amounts due under the Franchise Agreement may be reduced according to conditions of that promotional offer (including signing an addendum to the
Franchise Agreement, as we may then require). We describe certain promotional offers currently in effect on the issuance date of this Franchi
Source: Item 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the standard initial franchise fee is $30,000. If Checkersrallys has approved the restaurant location before the franchise agreement is signed, the full $30,000 is due upon signing. However, if the location is not yet approved, the fee is split into two payments: $10,000 when the agreement is signed and the remaining $20,000 within 30 days of location approval.
There are a few scenarios where this standard fee may be altered. If the franchise agreement is connected to a Development Agreement, a portion of the development fee may be credited towards the initial franchise fee. If a Non-Traditional Site Addendum is signed, the initial franchise fee is reduced to $15,000. Also, franchisees purchasing an existing Checkersrallys restaurant from a third party do not pay the initial franchise fee, but must ensure the transfer fee is paid.
Checkersrallys also offers several incentive programs that can reduce the initial franchise fee. These include the 2025 Growth Incentive, which offers a 50% reduction for the third and subsequent restaurants opened by a franchisee who meets specific criteria. The Existing Franchisee Incentive provides a $10,000 reduction for existing franchisees in good standing who open a new restaurant. The Vet Fran Incentive and the Women Business Owner Incentive both offer a 100% reduction of the initial franchise fee for eligible veterans and women business owners, respectively. These incentives are not always mutually exclusive, meaning a franchisee may be able to take advantage of multiple programs if they meet the criteria for each.
It is important to note that the initial franchise fee is generally non-refundable, although Checkersrallys may provide a 50% refund under specific circumstances, such as if the franchisee is unable to secure an acceptable site within 180 days or fails to obtain necessary permits within 60 days of signing the lease agreement, provided they execute a general release of claims against Checkersrallys. Additionally, failure to pay the initial franchise fee before opening the restaurant results in a daily increase of $500 until the full amount is paid. Prospective franchisees should carefully review all addenda and incentive programs to determine their eligibility for reduced fees and understand the conditions for potential refunds.