Are the costs for marketing, advertising, and promotional materials the same for all Checkers restaurants?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
rovide assistance; and supporting public relations, market research, and other advertising, promotion, and marketing activities.
Although the NPF is intended to maximize general recognition and patronage of the Marks for the benefit of all Restaurants, we cannot assure you that any particular Restaurant will benefit directly or pro-rata from the placement of advertising. The NPF may be used to pay for the cost of preparing and producing materials and campaigns we select, including video, audio and written advertising and point-of-purchase ("POP") materials, and for the cost of employing advertising agencies, in hous
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the costs for marketing, advertising, and promotional materials can vary among different Checkers restaurants. While franchisees are required to spend a minimum of 4.5% of Net Sales on advertising and promoting their franchised restaurant, the actual costs for materials can differ.
Checkers may furnish franchisees with marketing, advertising, and promotional materials, including point-of-purchase (POP) materials, at cost, plus any related administrative, shipping, handling, and storage charges. These costs are not uniform and "may vary based on individual Restaurants and their merchandising capacity." This implies that larger restaurants or those with greater merchandising capabilities may incur different costs compared to smaller locations.
Additionally, franchisees may need to create their own advertising and promotional materials, which must be approved by Checkers. The cost of producing these approved materials, if not provided by Checkers, also counts towards the minimum advertising expenditure. The FDD also mentions the National Production Fund (NPF), which is used for advertising and promotional activities. Franchisees contribute to this fund, and the NPF may pay for preparing and producing various advertising materials. However, the costs associated with these materials and campaigns can vary, and Checkers does not guarantee that any particular restaurant will benefit directly or pro-rata from the placement of advertising.
Furthermore, Checkers has the right to establish local and/or regional advertising cooperatives, and franchisees must participate and contribute to these cooperatives. The amounts contributed can vary as determined by the cooperatives themselves. If a Checkers restaurant is in an area without a cooperative, the franchisee may be required to spend the difference between the NPF contribution rate and 4.5% of net sales on local marketing, contribute to an advertising purchasing collective, or join a local or regional cooperative that Checkers creates. These different options and the varying costs associated with them further indicate that marketing and advertising expenses are not uniform across all Checkers locations.