Can Checkers designate regional or territory-specific usernames/handles for franchisees to maintain on social media?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
You must submit to us for our prior approval, samples of all advertising and promotional materials not prepared or previously approved by us and which vary from our standard advertising and promotional materials. You may not use any advertising or promotional materials that we have disapproved.
We have the right to establish local and/or regional advertising cooperatives for "Checkers" and/or "Rally's" restaurants in your local or regional area, covering such geographical areas as we may designate at any time and from time to time. You must participate in such advertising cooperative and its programs (other than price advertising, as to which you may choose not to participate) and abide by its by-laws. You must contribute such amounts to the advertising cooperative(s) as they determine at any time and from time to time in accordance with their by-laws. Any Restaurants owned by us or any of our Affiliates located in such designated local or regional area(s) will contribute to the cooperative(s) on the same basis. Contributions to such local and regional advertising cooperatives are credited toward the 4.5% advertising expenditures required by this Section; however, if we provide you and your local and/or regional advertising cooperative ninety (90) days' notice of a special regional promotion, you must participate in such promotion and pay to us any regional advertising fees assessed in connection therewith, beginning on the effective date of such notice and continuing until such regional promotion is concluded. Any such special regional advertising fees shall be in addition to, and not credited towards, the 4.5% advertising expenditure required by this Section.
If your Franchised Restaurant is located in a geographical area where we have not established an advertising cooperative, then, at our option, you will be required to either (i) spend the difference between the current NPF contribution rate and 4.5% of your Net Sales marketing your Franchised Restaurant in your local market, (ii) contribute to an advertising purchasing collective that we establish and control (which may not be governed by by-laws similar to a typical local or regional advertising cooperative where you will have voting rights), or (iii) join a local or regional cooperative that we create in your designated marketing area. If we require you to contribute to an advertising purchasing collective, we will provide you with an accounting of the amount spent in your designated marketing area.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, franchisees must submit all advertising and promotional materials not already approved by Checkers for prior approval. This includes materials that vary from Checkers' standard advertising. Franchisees are prohibited from using any advertising or promotional materials that Checkers has disapproved. This indicates that while franchisees can propose their own advertising and promotional content, including social media usernames/handles, Checkers retains control over the final branding and marketing messages.
Checkers also has the right to establish local and/or regional advertising cooperatives for Checkers and Rally's restaurants. Franchisees are required to participate in these cooperatives and their programs, contributing financially as determined by the cooperative's bylaws. These contributions count toward the required 4.5% advertising expenditure. However, Checkers can mandate participation in special regional promotions with additional fees, which are not credited towards the 4.5% requirement. This structure suggests that Checkers may guide or standardize social media practices within these cooperatives to maintain brand consistency across regions.
If a Checkers restaurant is in an area without an advertising cooperative, Checkers has the option to require the franchisee to spend the difference between the current NPF contribution rate and 4.5% of net sales on local marketing, contribute to an advertising purchasing collective controlled by Checkers, or join a local or regional cooperative created by Checkers in their designated marketing area. If contributing to an advertising purchasing collective, Checkers will provide an accounting of the amount spent in the franchisee's designated marketing area. This further emphasizes Checkers' control over advertising and promotional activities, including potential influence over social media usernames/handles and content, even outside of established cooperatives.
In summary, while the FDD does not explicitly state whether Checkers designates regional or territory-specific usernames/handles, the level of control Checkers maintains over advertising and promotional materials, as well as the establishment and management of advertising cooperatives and purchasing collectives, suggests that Checkers has the authority to influence or potentially designate such usernames/handles to ensure brand consistency and marketing strategy alignment.