Are contributions to local and regional advertising cooperatives credited toward the 4.5% advertising expenditures required by the Checkers Franchise Agreement?

According to Checkers's 2025 Franchise Disclosure Document, contributions to local and regional advertising cooperatives are generally credited toward the 4.5% advertising expenditures required by the Franchise Agreement. However, Checkers can require franchisees to participate in special promotions with 90 days' notice. In these cases, the advertising fees assessed for the promotion are in addition to the standard 4.5% advertising expenditure. This means franchisees could potentially spend more than 4.5% of net sales on advertising during promotional periods.

If a Checkers franchisee's contributions to the National Production Fund (NPF) and local/regional advertising cooperative are less than 4.5% of Net Sales monthly, the franchisee must spend the difference on local advertising to promote their restaurant. Alternatively, Checkers may require franchisees to contribute to an advertising purchasing collective that Checkers establishes and controls. Franchisees are responsible for participating in all required advertising, promotional, and marketing programs at their own expense and must provide monthly reports of their marketing expenditures to Checkers.

Checkers has the right to establish local and/or regional advertising cooperatives and can determine the geographical areas they cover. These cooperatives are independently administered with assistance from Checkers and an outside accounting firm. Cooperative contribution rates generally range from 0.5% to 1.85% of Net Sales and are subject to change. Some franchisees, such as those in Walmart stores or non-traditional sites, may have lower contribution levels. Checkers also retains the right to form, change, dissolve, or merge advertising cooperatives at its discretion.

Checkers does not guarantee any specific level of advertising in a franchisee's geographic area. Franchisees may be required to use specific suppliers for local advertising and spend all or part of their local advertising budget with these suppliers. If Checkers requires participation in an advertising purchasing collective, they will provide an accounting of the amount spent in the franchisee's designated marketing area. This system allows Checkers significant control over advertising and marketing efforts, while also requiring franchisees to actively participate and contribute financially.