Can some Checkers franchisees contribute at a rate that varies from the standard contribution rate?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Some franchisees in a cooperative may contribute at a rate that varies from the standard contribution rate for the other franchisees in that cooperative if permitted or authorized by the cooperative, pursuant to the by-laws and/or rules of the particular cooperative, and/or by vote of the cooperative or its governing members or executives. By way of example, franchisees of Restaurants operating, or that will operate, within or at Walmart stores or other Non-Traditional Sites (as we may determine, in our sole discretion) may pay a lower contribution level to their local cooperatives than the general membership because, among other reasons, such restaurants often cater to separate customer flow not driven primarily by the promotions and campaigns executed by those franchisees' local cooperatives.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, some franchisees within a cooperative may have different advertising contribution rates than the standard rate. This can occur if the cooperative permits or authorizes it, according to its bylaws, rules, or a vote by its members or executives. For example, Checkers restaurants operating in Walmart stores or other non-traditional sites may contribute less to their local cooperatives. These locations often serve a different customer base that is not primarily driven by the local cooperative's promotions.
Checkers franchisees are required to participate in advertising cooperatives and adhere to their bylaws, contributing amounts determined by the cooperative. However, Checkers may try to work with the cooperative to adjust bylaws or policies if there are reasonable grounds for varied participation or contribution levels among members, such as restaurants in non-traditional locations that benefit less from local advertising. Any Checkers-owned restaurants in the area will contribute to the cooperative on the same basis as franchisees.
These contributions to local and regional advertising cooperatives are credited toward the 4.5% advertising expenditure required by the Franchise Agreement. However, Checkers can require participation in special promotions with 90 days' notice, and any fees for these regional promotions are in addition to the standard 4.5% advertising expenditure. This system allows for flexibility in advertising contributions based on location and specific circumstances, while also ensuring a base level of advertising investment from all franchisees.