To whom is the Initial Advertising Deposit paid 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 (See Note 2) | $322,062- $739,445 | Dependent upon bank financing | As agreed | Contractors, Suppliers, Lending Institutions |
| Restaurant Equipment & Technology | $193,260- $329,538 | As incurred | On ordering | Suppliers |
| Soft Costs (See Note 3) | $50,000- $89,710 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions |
| Signage including | $29,050- | As incurred | On ordering | Us or Other |
| Menuboards | $134,081 | Supplier | ||
| Inventory (See Note | $4,000 - | As incurred | When delivered | Suppliers |
| 4) | $12,000 | |||
| 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 |
| 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)) | $683,372 - $1,479,774 |
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 for a Site Built Restaurant is paid to the National Production Fund. This payment is a lump sum that is due when construction begins at the premises.
This initial advertising deposit is part of the estimated initial investment for opening a Checkersrallys franchise. The total estimated initial investment for a Site Built Restaurant, excluding real estate costs, ranges from $683,372 to $1,479,774. This investment covers various expenses, including the initial franchise fee, restaurant building costs, equipment, technology, soft costs, signage, inventory, and additional funds for the first three months of operation.
Prospective franchisees should note that this advertising deposit is non-refundable, like most of the initial payments. It's important to factor this cost into the overall financial planning when considering opening a Checkersrallys franchise. The funds are specifically earmarked for national advertising efforts to promote the Checkersrallys brand.