What happens to any remaining amount from the Initial Advertising Deposit for a Checkers Restaurant after the initial advertising and promotional program is complete?
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 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if a franchisee has any funds remaining from the initial advertising deposit after the initial advertising and promotional program is complete, Checkers will deposit that remaining amount into the National Production Fund, after deducting any incurred costs and expenses.
For a new Checkers restaurant, franchisees must pay a $15,000 advertising deposit to NPF Inc., an affiliate of Checkers, to administer the National Production Fund. This deposit is due when construction commences or 10 weeks from the anticipated opening date, whichever is earlier. The deposit is used for an initial advertising and promotional program for the franchised restaurant.
This means that Checkers retains control over any unspent advertising funds, allocating them to the National Production Fund rather than returning them directly to the franchisee. The National Production Fund is described in Item 11 of the FDD.