Do Checkers-owned restaurants contribute to advertising cooperatives on the same basis as franchisees?

According to Checkers's 2025 Franchise Disclosure Document, Checkers-owned restaurants contribute to the National Production Fund (NPF) on the same basis as franchisees. However, Checkers and its affiliates are not obligated to continue doing so throughout the franchise term. The NPF is used for creating marketing materials and advertising campaigns. Franchisees must contribute to the NPF, with the amount determined by Checkers, but not exceeding 3% of Net Sales. As of the FDD's issuance, the monthly advertising fee is 2.65% of Net Sales but can increase to 3.0%, depending on the restaurant's location. Some Rally's Restaurants operators with older agreements may contribute differently.

For local and regional advertising cooperatives, any restaurants owned by Checkers or its affiliates in a designated area will contribute to the cooperative on the same basis as franchisees. These contributions are credited toward the 4.5% advertising expenditure required by the Franchise Agreement. However, Checkers can require participation in special promotions with additional advertising fees.

This means that, at least initially, franchisees and company-owned restaurants share the costs of advertising through the NPF and local cooperatives. However, Checkers retains the right to alter its contribution policy for company-owned restaurants, which could shift a relatively larger portion of the advertising burden onto franchisees. Franchisees should consider this potential change when evaluating the overall cost of advertising and marketing.