What is the amount of the Initial Advertising Deposit required for a new Checkers Restaurant franchise?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising and Promotional Program Deposit*
If your Franchise Agreement is for a new Checkers Restaurant or Rally's Restaurant, you must pay a $15,000 advertising deposit (the "Initial Advertising Deposit") to our affiliate, NPF Inc., who administers the National Production Fund (described in Item 11). The Initial Advertising Deposit is due at the earlier of when you commence construction at the Premises for the Franchised Restaurant or 10 weeks from the anticipated opening date of the Franchised Restaurant. This amount is used to conduct, through the National Production Fund (and if applicable, any local advertising cooperative) an initial advertising and promotional program at the Franchised Restaurant as we deem appropriate. When the initial advertising and promotional program is complete, we will (after deducting for incurred costs and expenses) deposit any remaining amount from the initial advertising deposit to the National Production Fund.
During our 2024 fiscal year, franchisees that signed franchise agreements during the year paid pre-opening fees as we describe above ranging from $0 to $45,000 per Restaurant (inclusive of the initial franchise fee, asset transfe
Source: Item 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, new franchisees are required to pay an Initial Advertising Deposit. If the Franchise Agreement is for a new Checkers Restaurant, the franchisee must pay a $15,000 advertising deposit to NPF Inc., Checkers's affiliate, who administers the National Production Fund. This deposit is due when construction commences at the premises or 10 weeks from the anticipated opening date, whichever is earlier.
The Initial Advertising Deposit is used by Checkers to conduct an initial advertising and promotional program for the new franchise, utilizing the National Production Fund and any applicable local advertising cooperatives. After the program is complete, any remaining funds from the deposit, after deducting incurred costs and expenses, will be deposited back into the National Production Fund.
It is important to note that during Checkers's 2024 fiscal year, franchisees that signed franchise agreements paid pre-opening fees ranging from $0 to $45,000 per Restaurant, which includes the initial franchise fee, asset transfer fees, and the Initial Advertising Deposit. This indicates that the total pre-opening costs can vary significantly, and the $15,000 Initial Advertising Deposit is just one component of these expenses.