What happens to any remaining amount from the Initial Advertising Deposit for a Checkersrallys restaurant after the initial advertising and promotional program is complete?
Checkersrallys 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 Checkersrallys's 2025 Franchise Disclosure Document, if a franchisee's agreement is for a new Checkers or Rally's restaurant, they must pay a $15,000 Initial Advertising Deposit to NPF Inc., an affiliate that manages the National Production Fund. This deposit is due when construction commences or 10 weeks before the anticipated opening date.
The purpose of this Initial Advertising Deposit is to fund an initial advertising and promotional program for the new franchised restaurant, managed through the National Production Fund and potentially any local advertising cooperatives. Checkersrallys determines the specifics of this program.
Once the initial advertising and promotional program is completed, Checkersrallys will deduct any incurred costs and expenses from the Initial Advertising Deposit. The remaining balance, if any, will then be deposited into the National Production Fund. This means that franchisees will not receive a direct refund of any unused portion of the deposit; instead, it will be used for broader national advertising efforts.
This policy ensures that all funds are used for advertising and promotional activities, either at the local level during the initial launch or at the national level for ongoing brand support. Franchisees should be aware that the initial deposit is specifically for advertising and is not refundable to them directly.