Under the Checkersrallys 2025 Growth Incentive, what conditions must be met to have the royalty fee waived?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
to customers in good faith.
2025 Growth Incentive
If you: (i) sign a Franchise Agreement (and pay the standard initial franchise fee) on or before December 30, 2025; (ii) open the Franchised Restaurant to the general public within 18 months of signing the Franchise Agreement; (iii) the Franchised Restaurant complies with the current reimaging requirements; and (iv) you, your owners, or your and their affiliates are Restaurant Net Positive (defined above) at the time the Franchised Restaurant opens, then we will waive the royalty fee payable under the Franchise Agreement until the earlier of: (a) the total value of the royalty fee abatement (calculated based on the standard royalty fee due under the Franchise Agreement) equals $75,000 or (b) the Franchised Restaurant has operated for twenty-four (24) months.
You must remain in full compliance with your Franchise Agreement to be eligible for any of the development incentives listed above. You will provide us any documentation that we may require proving your compliance with the deadlines included above. To receive the benefit of these reduced royalty amounts, you must sign our required form of 2025 Growth Incentive Addendum to the Franchise Agreement (attache
Source: Item 6 — OTHER FEES (FDD pages 21–29)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the 2025 Growth Incentive offers a royalty fee waiver under specific conditions. To qualify, a prospective Checkersrallys franchisee must: (1) sign a Franchise Agreement and pay the standard initial franchise fee on or before December 30, 2025; (2) open the Franchised Restaurant to the general public within 18 months of signing the Franchise Agreement; (3) ensure the Franchised Restaurant complies with the current reimaging requirements; and (4) ensure that the franchisee, their owners, or their affiliates are Restaurant Net Positive (as defined in the FDD) at the time the Franchised Restaurant opens.
If these conditions are met, Checkersrallys will waive the royalty fee payable under the Franchise Agreement until the earlier of two events: either the total value of the royalty fee abatement (calculated based on the standard royalty fee due under the Franchise Agreement) equals $75,000, or the Franchised Restaurant has operated for twenty-four (24) months. This incentive is designed to help new franchisees get their Checkersrallys restaurant off to a strong start by reducing initial costs.
To remain eligible for the 2025 Growth Incentive, the franchisee must stay in full compliance with the Franchise Agreement. Checkersrallys may also require documentation to prove compliance with the specified deadlines. Furthermore, to officially receive the reduced royalty amounts, the franchisee must sign Checkersrallys's required form of 2025 Growth Incentive Addendum to the Franchise Agreement, which is attached as Exhibit B-2 to the Franchise Disclosure Document. This addendum likely outlines the specific terms and conditions of the incentive in greater detail, providing a legally binding agreement between Checkersrallys and the franchisee.