Under what conditions might Checkersrallys charge a sublease administrative fee?

According to Checkersrallys's 2025 Franchise Disclosure Document, a sublease administrative fee may be charged under specific circumstances related to existing restaurants. If a franchisee is purchasing an existing Checkers Restaurant or Rally's Restaurant from Checkersrallys or its affiliate, and Checkersrallys agrees to sublease the premises to the franchisee while remaining on the master lease, Checkersrallys has the right to charge a sublease administrative fee.

The sublease administrative fee can be up to 10% of the remaining rent due under the current lease term. This fee is charged in consideration for Checkersrallys remaining as a guarantor on the lease. This means that Checkersrallys is taking on the risk of the franchisee not fulfilling the lease obligations, and the fee compensates them for this risk.

For a prospective franchisee, this means that if you are buying an existing Checkersrallys location and Checkersrallys is subleasing the property to you, you need to be prepared to potentially pay this administrative fee. The actual amount will depend on the specific terms of the lease and the remaining rent due. It is important to factor this potential cost into your financial planning when considering purchasing an existing Checkersrallys restaurant.