When is the Initial Advertising Deposit due for a Checkersrallys Conversion Restaurant?
Checkersrallys 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 Checkersrallys's 2025 Franchise Disclosure Document, the initial advertising deposit of $15,000 is due when you begin construction at the premises for a conversion restaurant. This deposit is a lump sum payment and is to be made to the National Production Fund. This requirement applies regardless of whether the Checkersrallys restaurant is a new build, conversion, or site-built location.
This means that a prospective Checkersrallys franchisee needs to have $15,000 available at the outset of the project, specifically when construction commences. This is in addition to other initial investment costs such as the initial franchise fee, asset transfer fee, and costs related to restaurant building, equipment, and inventory. It is important to note that this advertising deposit is separate from any ongoing advertising fees that may be required during the operation of the franchise.
Understanding when this payment is due is crucial for budgeting and financial planning. Franchisees should coordinate closely with Checkersrallys and their contractors to accurately predict the start of construction and ensure timely payment of the advertising deposit. Failure to pay on time could potentially delay the construction process and the opening of the Checkersrallys restaurant.