For a new Checkersrallys restaurant, what is the amount of 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, if the franchise agreement is for a new restaurant, the franchisee must contribute $15,000 to the National Production Fund (NPF) as an Initial Advertising Deposit. This deposit is due when construction begins at the premises for the franchised restaurant.
Checkersrallys will use this deposit to conduct an initial advertising and promotional program for the franchised restaurant through the NPF, and potentially any local advertising cooperative, as they deem appropriate. The deposit will cover advertising, promotions, and related expenses incurred by the NPF for the restaurant.
Upon completion of the initial advertising and promotional program, any remaining amount from the Initial Advertising Deposit, after deducting incurred costs and expenses, will be credited towards the franchisee's required advertising contributions to the NPF or their local advertising cooperative. However, Checkersrallys does not guarantee the effectiveness of the advertising program and has no obligation to provide a detailed accounting of the Initial Advertising Deposit beyond the general accounting for the NPF.