When is the Initial Advertising Deposit due for a new Checkersrallys restaurant franchise?
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 is opening a new Checkers or Rally's restaurant, they must pay a $15,000 advertising deposit to NPF Inc., Checkersrallys's affiliate, which manages the National Production Fund. This deposit is referred to as the "Initial Advertising Deposit."
The Initial Advertising Deposit is due at the earlier of two dates. The first is when the franchisee begins construction at the premises of the franchised restaurant. The second is 10 weeks from the anticipated opening date of the franchised restaurant. This means a prospective franchisee needs to be prepared to pay this fee relatively early in the process of opening their Checkersrallys franchise.
Checkersrallys uses this $15,000 to conduct an initial advertising and promotional program for the franchised restaurant through the National Production Fund and any applicable local advertising cooperatives. After the advertising program is complete, Checkersrallys will deposit any remaining amount from the initial advertising deposit, after deducting incurred costs and expenses, into the National Production Fund. This indicates that the entire deposit may not be spent directly on the franchisee's restaurant, but any unused funds will benefit the larger Checkersrallys advertising pool.