How does Checkers determine the geographical areas for advertising co-ops?

According to Checkers' 2025 Franchise Disclosure Document, the geographical areas for advertising co-ops are determined by the marketing department. Checkers implements a co-op if it determines that a percentage of Net Sales of all Restaurants in the area can buy sufficient rating points in television, radio, outdoor, print and digital/social or some appropriate combination. Checkers has the right to form, change, dissolve, or merge advertising cooperatives at its sole discretion.

Franchisees are required to participate in these advertising cooperatives and adhere to their bylaws, contributing amounts as determined by the co-ops. These contributions count toward the 4.5% advertising expenditure required by the Franchise Agreement. However, Checkers can mandate participation in special promotions with 90 days' notice, where fees are in addition to the standard advertising expenditure.

Advertising through these cooperatives can utilize various media, including TV, radio, and digital platforms. While Checkers aims to maximize brand recognition, there's no guarantee that individual restaurants will directly benefit from advertising placements. The National Production Fund (NPF) also plays a role in creating marketing materials and campaigns, with funds allocated to production, digital media, research, and field marketing. Franchisees contribute to the NPF, with the contribution amount, as of the issuance date of the 2025 Franchise Disclosure Document, currently at 2.65% (but can be increased up to 3.0%) of Net Sales depending on the geographical area where the Franchised Restaurant is located.

Prospective franchisees should be aware that Checkers retains significant control over advertising cooperatives and the allocation of advertising funds. While franchisee input may be considered through the Franchisee Advisory Council, Checkers ultimately decides on the formation, changes, and dissolution of advertising co-ops. Franchisees should inquire about the specific contribution rates and advertising plans for their local area to fully understand their financial obligations and potential benefits.