When must the Local Advertising Fee be spent for a Checkers franchise?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (See Note 1) | |---|---|---|---| | Royalty | 4% of your Net Sales | Semi-monthly, | Net Sales is defined in Note 2 | | | or 2% of your Net | on or before the | below. See Note 2 for the | | | Sales if you operate a | 5th and 20th | 2025 Growth Incentive | | | Restaurant from a | day of each | Program and Reimage | | | Non-Traditional Site. | month. | Incentive Program. | | National Production Fund Contributions (See Notes 3 and 4) | You will be required to pay up to 3% of your Net Sales (currently, 2.65% of your Net Sales). | Monthly, on the 5th day of each month. | Varies. The amount is credited toward your 4.5% advertising expenditure requirement. Your contribution rate is subject to change from time to time. | | Cooperative Advertising (See Notes 4 and 5) | Determined by your local or regional advertising cooperative. | Monthly, on the 5th day of each month. | Payments to local or regional advertising cooperatives are credited toward your 4.5% advertising expenditure requirement. |
| TYPE OF FEE Local Advertising Fee (see Notes 5 and 6) | AMOUNT The difference between the current NPF contribution rate and 4.5% of your Net Sales. | DUE DATE Must be spent on advertising and promotion during each of your fiscal quarters. | REMARKS (See Note 1) If your Franchised Restaurant is located in a geographical area where we have not established an advertising cooperative, then, we may require you contribute to an advertising purchasing collective that we establish and control. |
Source: Item 6 — OTHER FEES (FDD pages 21–30)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the Local Advertising Fee must be spent on advertising and promotion during each of your fiscal quarters. The amount of this fee is the difference between the current National Production Fund (NPF) contribution rate and 4.5% of your Net Sales.
If Checkers has not established an advertising cooperative in the franchisee's geographical area, Checkers may require the franchisee to contribute to an advertising purchasing collective that Checkers establishes and controls. The current NPF contribution rate is 2.65% of Net Sales.
Therefore, if a Checkers franchisee's restaurant is not in an advertising cooperative area, they must spend the difference between 2.65% and 4.5% of net sales on local advertising each fiscal quarter, or contribute that amount to a Checkers-controlled advertising collective. This ensures consistent local marketing efforts to support the Checkers brand.