Under the Checkersrallys development agreement, what is the development fee per restaurant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
fee amount listed in the Section 3(b) chart). For the avoidance of doubt, the standard amount of initial franchise fee reduction in the chart of Section 3(b), above, will not apply to any Franchise Agreement entered into in connection with a renewal or transfer of a Restaurant.
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- For purposes of the chart in Section 3(a), above, a Restaurant that is permanently closed after having been opened, other than as a result of noncompliance by you with the terms of the applicable Franchise Agreement, shall be deemed open for a period of 6 months after the last day it was open for business, provided that: (i) during such period of time, you continuously and diligently take such ac
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a development fee is required when signing a development agreement. The development fee is calculated at $10,000 for each restaurant to be developed under the agreement. This fee is non-refundable under any circumstances, including if the franchisee fails to develop the restaurants as planned. The fee is considered earned by Checkersrallys upon payment.
For each franchise agreement a franchisee enters into according to the development schedule, Checkersrallys will apply $10,000 of the development fee towards the initial franchise fee due under that franchise agreement. This means the development fee essentially acts as a credit towards the initial franchise fees for each location opened under the development agreement.
This arrangement is fairly common in franchise development agreements, where an upfront fee secures the rights to develop a territory, with portions of the fee then applied to the standard franchise fees as each unit opens. Prospective Checkersrallys franchisees should carefully consider the development schedule and their ability to meet it, as the development fee is non-refundable even if they fail to open all the planned locations.