What is the standard transfer fee for a Checkersrallys franchise to a new franchisee?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
staurants, or otherwise incorporate into the System for all franchisees) and to add or replace fixtures, furniture, equipment, signs and supplies in accordance with our then current requirements and specifications for Restaurants within the time period we specify following the effective date of the transfer (we will advise the transferee before the effective date of the transfer of the specific actions that it must take and the time period within which such actions must be taken);
- (i) you must ensure that we receive, before we will approve any proposed transferee to begin conducting business activities at the Franchised Restaurant as its authorized operator, a transfer fee equal to Twenty Thousand Dollars ($20,000) (or, if the proposed transferee is a then-current franchisee of a Restaurant, a transfer fee equal to Ten Thousand Dollars ($10,000)), provided, however, if this Agreement is being transferred as part of a transaction involving franchise agreements for multiple Restaurants and the franchise agreement for eac
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the standard transfer fee when transferring a franchise to a new franchisee is $20,000. However, if the transfer is to a then-current franchisee of a Checkersrallys restaurant, the transfer fee is reduced to $10,000.
If the transfer involves multiple restaurants being transferred on the same day, the transfer fee is $20,000 (or $10,000 if the transferee is a current franchisee) for the first restaurant, plus an additional $5,000 for each additional restaurant included in the transfer. This applies regardless of any conflicting information in other franchise agreements governing the restaurants being transferred.
For a prospective Checkersrallys franchisee, this means that if they decide to sell their franchise, they will generally need to ensure the buyer pays a $20,000 transfer fee to Checkersrallys, unless the buyer already owns a Checkersrallys franchise. In a multi-unit transfer, the additional $5,000 per restaurant fee could significantly increase the cost for the buyer, potentially affecting the sale. It is important to note that this transfer fee is in place before the transfer can be approved to the new franchisee.