When is the initial advertising deposit of $15,000 due for a Checkers modular design drive-thru restaurant?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 signing the Franchise Agreement. | Us |
| Initial Advertising Deposit | $15,000 | Lump sum | When you begin construction at the Premises | National Production Fund |
| Asset Transfer Fee | $0 - $10,000 | Lump Sum | At time of signing the Franchise Agreement | Us |
| Restaurant Building Costs (See Note 2) | $395,000 - $477,250 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions |
| Restaurant Equipment & Technology (See Note 2) | $75,500 - $352,000 | As incurred | On ordering | Suppliers |
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 for a modular design drive-thru restaurant. This deposit is a lump sum payment and is to be made to the National Production Fund (NPF) Inc. or National Production Fund, depending on the restaurant format.
This advertising deposit is part of the initial investment required to start a Checkers franchise. It's important for prospective franchisees to factor this cost into their startup budget and understand when the payment is due to ensure they have sufficient funds available when construction begins. The funds are specifically earmarked for advertising purposes, suggesting that Checkers places a strong emphasis on marketing and brand awareness from the outset.
It is important to note that the FDD lists different estimated initial investments for different restaurant formats. While the initial advertising deposit remains consistent at $15,000 across the modular design drive-thru, conversion restaurant, and site-built restaurant formats, other costs such as restaurant building costs and restaurant equipment & technology can vary significantly. Therefore, franchisees should carefully review the investment chart that corresponds to their chosen restaurant format to get an accurate estimate of their total initial investment.