Does Checkers always require a security deposit, and what was the frequency of security deposits collected during Checkers' 2024 fiscal year?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If we agree to sublease the Premises of your Franchised Restaurant to you, we may require you to pay us a refundable security deposit before you open or begin to operate the Franchised Restaurant. The amount of the security deposit, if any, will depend on the amount of the security deposit paid to the landlord of the Premises. During our 2024 fiscal year, we did not receive any security deposits from franchisees.
Source: Item 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, whether a security deposit is required depends on the sublease agreement. Checkers may require a refundable security deposit if they sublease the premises to the franchisee. The amount of the security deposit, if required, is based on the security deposit Checkers pays to the landlord.
However, Checkers did not collect any security deposits from franchisees during the 2024 fiscal year. This indicates that while the possibility exists, it is not a standard practice for Checkers to collect security deposits from franchisees.
Prospective franchisees should inquire about the specific circumstances under which a security deposit would be required, how the amount is determined, and the conditions for its refund. Understanding these details will help franchisees prepare for the potential initial costs and financial obligations associated with opening a Checkers franchise.