To whom is the initial advertising deposit paid for a Checkers gas/convenience, non-traditional, or Walmart 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 |
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 for a gas/convenience, non-traditional, or Walmart restaurant is paid to the National Production Fund. This deposit amounts to $15,000 and is due when construction begins at the premises.
This initial advertising deposit is a one-time, lump sum payment that franchisees must make. It is specifically earmarked for the National Production Fund, suggesting that these funds are used for creating national-level advertising campaigns and marketing materials that benefit all franchisees within the Checkers system. This type of advertising fund is common in franchising, as it allows for coordinated and impactful marketing efforts that individual franchisees might struggle to achieve on their own.
Prospective Checkers franchisees should understand that this $15,000 deposit is in addition to other initial investment costs, such as the initial franchise fee, asset transfer fee, and expenses related to restaurant building, equipment, and inventory. It's crucial to factor this advertising deposit into the overall financial planning for opening a Checkers franchise. Franchisees should also inquire about how the National Production Fund is managed and how it benefits their specific location and market.