According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys may require a franchisee to pay a refundable security deposit if Checkersrallys agrees to sublease the premises of the franchised restaurant to the franchisee. This deposit is required before the franchisee opens or begins to operate the restaurant. The FDD indicates that the decision to require a security deposit is at Checkersrallys's discretion.

The amount of the security deposit, if required, is directly tied to the security deposit Checkersrallys itself pays to the landlord for the premises. This implies that Checkersrallys aims to pass through the security obligations it faces as the primary leaseholder to the franchisee operating the restaurant. During the 2024 fiscal year, Checkersrallys did not receive any security deposits from franchisees.

For a prospective Checkersrallys franchisee, this means that if the company subleases the restaurant premises to you, you should be prepared to potentially pay a security deposit. The exact amount will depend on the terms of Checkersrallys's lease with the property owner. It is advisable to discuss the likelihood and potential amount of this security deposit with Checkersrallys during the due diligence process to fully understand the initial investment requirements. Understanding the lease terms and security deposit requirements is a standard part of assessing the financial viability of a franchise location.