How are payments to local or regional advertising cooperatives credited 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. |
Source: Item 6 — OTHER FEES (FDD pages 21–30)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, payments made to local or regional advertising cooperatives are credited toward the franchisee's mandatory advertising expenditure. Checkers requires franchisees to spend 4.5% of their Net Sales on advertising and marketing. This 4.5% can be comprised of contributions to the National Production Fund (NPF), contributions to regional or local advertising cooperatives, and direct spending on local marketing.
If a Checkers franchisee is part of a local or regional advertising cooperative, the amount they contribute to that cooperative is credited towards meeting the 4.5% advertising expenditure requirement. However, if the combined contribution rate for the NPF and the local advertising cooperative exceeds 4.5% of Net Sales, the franchisee's total advertising expenditure will be higher than the minimum requirement. This means that franchisees in active advertising cooperatives may be required to invest more in advertising than the base 4.5%.
In areas where Checkers has not established an advertising cooperative, franchisees may be required to spend the difference between the current NPF contribution rate and 4.5% of Net Sales on local marketing. Alternatively, Checkers may require franchisees to contribute to an advertising purchasing collective controlled by Checkers or join a local or regional cooperative created by Checkers. This ensures that all franchisees contribute to advertising efforts, even if a formal cooperative does not exist in their area. Franchisees should note that Checkers can mandate participation in special regional promotions with 90 days' notice, with associated fees not credited towards the standard 4.5% advertising expenditure.