When is the Initial Advertising Deposit due for a Checkersrallys Site Built 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 |
| Restaurant Building Costs (See Note 2) | $395,000 - $477,250 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions |
| Restaurant Equipment & Technology (See Note 2) | $75,500 - $352,000 | As incurred | On ordering | Suppliers |
| Column 1 Type of expenditure | Column 2 Amount | Column 3 Method of payment | Column 4 When Due | Column 5 To whom payment is to be made |
| Soft Costs (See Note 3) | 27,500 – 33,000 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions |
| Signage including | $14,725 - | As incurred | On ordering | Us or Other |
| Menuboards | $17,729 | Supplier | ||
| Inventory (See Note | $4,000 - | As incurred | When delivered | Suppliers |
| 4) | $12,000 | |||
| Additional Funds - 3 Months (See Note 5) | $50,000 - $120,000 | As incurred | As incurred | Employees, suppliers, utilities, etc. |
| TOTAL ESTIMATED INITIAL INVESTMENT (exclusive of real estate and related costs (see Note 2 and 6)) | $601,725 – $1,066,979 |
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 for a Site Built Restaurant is due when construction begins at the premises. This deposit amounts to $15,000 and is to be paid in a lump sum to the National Production Fund. This requirement applies specifically to the Site Built Restaurant model.
This initial advertising deposit is a mandatory expenditure that Checkersrallys franchisees must budget for when opening a new location. Unlike some other costs that are dependent on financing or incurred over time, this $15,000 lump sum payment is specifically tied to the commencement of construction. Therefore, franchisees need to ensure they have these funds available as they prepare to start building their restaurant.
It is important to note that this advertising deposit is separate from other advertising or marketing expenses that Checkersrallys franchisees may incur during the operation of their restaurant. This initial deposit is specifically earmarked for national advertising efforts and is managed by the National Production Fund. Franchisees should clarify with Checkersrallys what specific advertising activities this fund supports and how it benefits their local business.