Can a Checkers franchisee choose not to participate in price advertising within an advertising cooperative?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to establish local and/or regional advertising cooperatives for Restaurants in your local or regional area, covering such geographic 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.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, franchisees are required to participate in advertising cooperatives if they are established in their area. However, Checkers franchisees have the option to opt out of participating in price advertising programs within these cooperatives.
This means that while a franchisee must contribute to the advertising cooperative and adhere to its bylaws, they can choose not to be involved in any advertising campaigns that specifically promote prices. This provides franchisees with some control over their pricing strategies and allows them to differentiate themselves based on factors other than price, if they choose.
It's important to note that this opt-out provision applies specifically to price advertising within the cooperative. Checkers still retains the right to implement special regional promotions, in which franchisees must participate, and any associated regional advertising fees are in addition to the standard advertising expenditure requirements. Therefore, while franchisees have some flexibility regarding price advertising, they must still participate in broader promotional efforts initiated by Checkers.