When is the Checkersrallys transfer fee due?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
must be submitted for approval prior to distribution. |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (See Note 1) |
|---|---|---|---|
| Transfer Fee | Transfer of a Single Restaurant: $20,000 (or $10,000, if the transferee is an existing franchisee) Transfer of Multiple Restaurants: $20,000 (or $10,000, if the transferee is an existing franchisee) for the first Restaurant, plus $5,000 for each additional Restaurant to be transferred as part of a single transaction. | Upon transferring the franchise. | |
| 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. |
| Training Fee | Varies (estimated to be $1,000 or less per additional attendee) | Upon receipt of our bill. | We do not charge training fees for 2 attendees at initial training but may charge fees for additional attendees and for additional training. See Item 11. |
Source: Item 6 — OTHER FEES (FDD pages 21–29)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the transfer fee is due upon transferring the franchise or the Development Agreement. The amount of the transfer fee varies depending on whether you are transferring a single restaurant or multiple restaurants. For a single restaurant, the transfer fee is $20,000, but it is reduced to $10,000 if the transferee is an existing franchisee.
For multiple restaurants, the transfer fee is $20,000 (or $10,000 if the transferee is an existing franchisee) for the first restaurant, plus $5,000 for each additional restaurant being transferred as part of the same transaction. This means that if an existing franchisee were to transfer two restaurants, the transfer fee would be $15,000 ($10,000 for the first restaurant and $5,000 for the second).
It is important to note that all fees are imposed by and payable to Checkersrallys, and all fees are nonrefundable. Prospective franchisees should carefully consider these costs and ensure they have sufficient capital before entering into a franchise agreement or development agreement with Checkersrallys.