Under what circumstances related to the purchase of a Checkersrallys restaurant from a third party owner will the franchisee not pay an initial franchise fee?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, if this Agreement is executed in connection with your independent purchase of (or other receipt of transferred ownership interests in) the Franchised Restaurant's assets from a third party owner, then you will not pay us an initial franchise fee, but we must have received (on or before the Effective Date) the full amount of any associated transfer fee that was due to us in connection with that transaction.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee will not pay an initial franchise fee if they independently purchase the assets of a Checkersrallys restaurant from a third-party owner. However, Checkersrallys must receive any associated transfer fee that was due in connection with that transaction on or before the effective date of the agreement.
This means that if you are buying an existing Checkersrallys restaurant from someone who is not Checkersrallys itself or one of its affiliates, you may be exempt from paying the standard initial franchise fee. This could represent a significant cost savings for the franchisee.
However, it is critical to ensure that all transfer fees associated with the transaction are paid to Checkersrallys on time. Failure to do so could jeopardize the agreement. Prospective franchisees should confirm the amount of any transfer fees with Checkersrallys before finalizing the purchase agreement with the third-party owner.