Does Checkersrallys always require a security deposit when subleasing premises to a franchisee, and what was the company's experience with security deposits in the 2024 fiscal year?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
If we agree to sublease the Premises of your Franchised Restaurant to you, we may require you to pay us a refundable security deposit before you open or begin to operate the Franchised Restaurant. The amount of the security deposit, if any, will depend on the amount of the security deposit paid to the landlord of the Premises. During our 2024 fiscal year, we did not receive any security deposits from franchisees.
Source: Item 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys does not always require a security deposit when subleasing premises to a franchisee. Checkersrallys may require a security deposit if they agree to sublease the premises of the franchised restaurant to the franchisee. The FDD specifies that whether a security deposit is required depends on the security deposit Checkersrallys paid to the landlord of the premises.
For prospective Checkersrallys franchisees, this means that if Checkersrallys subleases the restaurant premises to you, you might have to pay a refundable security deposit. The amount is contingent on what Checkersrallys themselves paid to the landlord. Therefore, it is not a fixed amount and can vary.
During the 2024 fiscal year, Checkersrallys did not receive any security deposits from franchisees. This indicates that, at least recently, Checkersrallys has not been requiring security deposits from its franchisees, though this could change depending on their agreements with landlords.