Under what conditions is a Checkersrallys franchisee required to pay the Delivery Administration Fee?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (See Note 1) |
|---|---|---|---|
| Delivery Administration Fee | 2% of the total price charged to a customer that orders certain approved food, beverage and other items ("Delivered Products") from a third-party delivery service provider approved by us (each a "DSP"). | Bi-monthly. | Payable only if you are eligible to provide delivery services, elect to provide delivery and enter into the delivery services participation agreement (the "Delivery Program"). See Note 7. |
Source: Item 6 — OTHER FEES (FDD pages 21–29)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee is required to pay the Delivery Administration Fee under specific conditions related to the optional Delivery Program. This fee, set at 2% of the total price charged to a customer for 'Delivered Products' ordered through an approved third-party delivery service provider (DSP), is only payable if the franchisee is eligible to provide delivery services, elects to participate in the Delivery Program, and enters into the delivery services participation agreement.
In simpler terms, the Delivery Administration Fee is not a mandatory fee for all Checkersrallys franchisees. It applies only if a franchisee chooses to offer delivery services through a third-party provider approved by Checkersrallys. The franchisee must also meet the eligibility requirements set by Checkersrallys and formally agree to the terms of the Delivery Program by signing the participation agreement.
This fee covers Checkersrallys's administrative costs associated with managing the Delivery Program and negotiating terms with DSPs. Franchisees should carefully consider the costs and benefits of participating in the Delivery Program, including the Delivery Administration Fee, before deciding to offer delivery services. It's also important to note that Checkersrallys negotiates all terms with the DSPs, and franchisees must comply with all applicable agreements Checkersrallys negotiates with any DSP.
Prospective franchisees should inquire about the specific eligibility requirements for the Delivery Program, the approved DSPs in their area, and the full terms of the delivery services participation agreement to fully understand the obligations and costs associated with offering delivery services.