What must a Checkers franchisee do to promote and enhance the Franchised Restaurant?
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 advertis
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 64–65)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, new Checkers or Rally's franchisees are required to pay a $15,000 advertising deposit to NPF Inc., an affiliate that manages the National Production Fund. This deposit is due when construction begins on the restaurant or 10 weeks before the anticipated opening date, whichever comes first. The funds are used by the National Production Fund, and potentially local advertising cooperatives, to implement an initial advertising and promotional program for the new restaurant. Any funds remaining after deducting costs and expenses will be deposited into the National Production Fund.
This initial advertising deposit ensures that new Checkers locations receive a dedicated promotional push at launch. The franchisor, through the National Production Fund, handles the execution of this initial program, relieving the franchisee of the burden of creating their own marketing strategy at the outset. However, franchisees should be aware that the $15,000 is specifically for an initial program, and ongoing marketing efforts will likely require additional contributions to the National Production Fund or local advertising cooperatives as detailed in other sections of the FDD.
It is important for prospective franchisees to understand how these advertising funds are managed and what specific promotional activities are included in the initial program. They should also inquire about the typical duration and scope of the initial advertising program to effectively plan their ongoing marketing strategies and budgets beyond the pre-opening phase. Understanding the role and function of the National Production Fund is also crucial for long-term marketing and advertising efforts as a Checkers franchisee.