Under what condition related to a Development Agreement is the initial franchise fee for a Checkersrallys restaurant subject to a credit?

According to Checkersrallys's 2025 Franchise Disclosure Document, the initial franchise fee is subject to a credit if the Franchise Agreement is executed under a separate Development Agreement between Checkersrallys and the franchisee (or their affiliate) for multi-unit development. In this case, the initial franchise fee is subject to any applicable credit of a portion of the development fee against the initial franchise fee. The specifics of this credit are determined by the provisions outlined in the relevant Development Agreement.

This means that if a franchisee commits to opening multiple Checkersrallys restaurants under a Development Agreement, a portion of the fees paid for the development rights may be credited towards the initial franchise fee for each individual restaurant. The exact amount and conditions of this credit will be detailed in the Development Agreement itself, which is a separate contract from the standard Franchise Agreement.

For a prospective Checkersrallys franchisee, this highlights the importance of carefully reviewing the Development Agreement to understand the terms of any potential credit against the initial franchise fee. Franchisees should pay close attention to the conditions that must be met to qualify for the credit, as well as the specific amount or formula used to calculate the credit. This can significantly impact the overall cost of opening multiple Checkersrallys locations.