How much notice will Checkers provide a franchisee and their local/regional advertising cooperative before requiring participation in a special regional promotion?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Contributions to such local and regional advertising cooperatives are credited toward the five percent (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 five percent (5%) advertising expenditure required by this Section.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers will provide franchisees and their local/regional advertising cooperative with ninety (90) days' notice before requiring participation in a special regional promotion. This notice period allows franchisees and the cooperative to prepare for the promotion and adjust their advertising strategies accordingly.
This requirement means that Checkers franchisees must participate in these promotions and pay any associated regional advertising fees once the notice period is over. These fees are in addition to the standard advertising expenditure, which is 4.5% or 5% of net sales, depending on the specific franchise agreement. The franchisee cannot credit these special regional advertising fees towards their standard advertising expenditure requirement.
This policy ensures that Checkers can implement coordinated regional marketing campaigns. While franchisees must participate and bear the additional costs, the advanced notice provides some time to plan for the financial impact and integrate the promotion into their local marketing efforts. Franchisees should factor in the potential for these special regional promotions and associated costs when evaluating the overall financial obligations of the franchise.