When is the initial advertising deposit of $15,000 due for a Checkers franchise, and to whom is it paid?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ased operations.
1. MODULAR DESIGN DRIVE-THRU RESTAURANT
| Type of expenditure | Amount | Method of payment | When Due | To whom payment is to be made |
|---|---|---|---|---|
| Initial Franchise Fee (See Note 1) | $20,000 - $30,000 | Lump sum | At time of sign |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–39)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the initial advertising deposit of $15,000 is due when you begin construction at the premises. This deposit is paid in a lump sum to the National Production Fund.
This initial advertising deposit is part of the estimated initial investment required to open a Checkers franchise. It is specifically earmarked for advertising and promotional activities, which Checkers manages through the National Production Fund. Franchisees need to factor this payment into their startup costs and ensure funds are available when construction commences.
Understanding when this payment is due is crucial for managing the cash flow during the initial phase of setting up the franchise. Since it is tied to the construction phase, any delays in construction could also shift the timing of this payment. Prospective franchisees should coordinate closely with Checkers and their construction team to align payment schedules with the construction timeline. This will help in avoiding any last-minute financial crunches and ensure a smooth launch of the franchise.