After the initial advertising and promotional program for a new Checkersrallys restaurant, what happens to any remaining amount from the Initial Advertising Deposit?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
er that we have not previously approved, you must notify us and submit to us all information we may request concerning the proposed item or supplier. We may impose reasonable inspection and supervision fees on you to cover our costs associated with evaluating any proposed supplier or item you request us to consider approving for use by the Franchised Restaurant or the System.
3.06 Initial Advertising and Promotional Program.If this Agreement is for a new Restaurant, you agree to contribute Fifteen Thousand Dollars ($15,000) to the National Production Fund (the "Initial Advertising Deposit"). The Initial Advertising Deposit is due upon commencing construction at the Premises for the Franchised Restaurant. We describe the National Production Fund below in Section 10.01. We agree to use the Initial Advertising Deposit to conduct, through the NPF (and, if applicable, any local advertising cooperative), an initial advertising and promotional program for the Franchised Restaurant as we deem appropriate. The
Initial Advertising Deposit will be used to purchase advertising and promotions for the Franchised Restaurant, and to cover the types of expenses incurred by the NPF relating to the Franchised Restaurant. Upon completion of the initial advertising and promotional program we shall (after deducting for incurred costs and expenses) credit any remaining amount from the Initial Advertising Deposit towards your required adverti
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees contribute $15,000 to the National Production Fund (NPF) as an Initial Advertising Deposit when opening a new restaurant. This deposit is used by Checkersrallys, through the NPF or local advertising cooperative, to fund an initial advertising and promotional program for the new franchise location.
Following the completion of this initial advertising program, Checkersrallys will deduct any costs and expenses incurred. Any amount remaining from the initial $15,000 deposit will be credited towards the franchisee's required advertising contributions. These contributions can be directed to either the NPF or the local advertising cooperative, depending on the advertising structure in place for that location.
It's important to note that Checkersrallys does not provide any guarantees regarding the effectiveness of the initial advertising and promotional program. Furthermore, Checkersrallys has no obligation to provide a detailed accounting of the Initial Advertising Deposit beyond the general accounting for the NPF. This means franchisees should be aware that while unspent funds are credited towards future advertising, specific details on how the initial deposit was spent may not be readily available.