What is the range of contribution rates for Checkers advertising cooperatives?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTE 5: Decisions of advertising cooperatives generally are made by majority vote based on one vote per restaurant. Accordingly, we may control the cooperative in certain areas where company-owned Checkers Restaurants or Rally's Restaurants constitute the majority. Typically, however, the by-laws require certain votes (e.g., contribution rate increases) to be based on one vote per entity and not one vote per restaurant. The cooperative contribution rates generally range from 0.5% to 1.85% of Net Sales, but may vary. Cooperatives may purchase any media or advertising of their choosing, including home, linear TV, terrestrial/streaming radio, connected TV, online video, digital display, paid search, programmatic digital, and social media.
Source: Item 6 — OTHER FEES (FDD pages 21–30)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the contribution rates for advertising cooperatives generally range from 0.5% to 1.85% of Net Sales. However, these rates may vary depending on the specific cooperative. These cooperatives can use the funds to purchase various forms of advertising, including TV, radio, online video, and social media. Decisions within the advertising cooperatives are typically made by a majority vote, with each restaurant having one vote. However, certain critical decisions, such as increasing the contribution rate, may require a vote based on one vote per entity rather than per restaurant.
Prospective Checkers franchisees should note that these cooperative advertising contributions are credited toward the overall advertising expenditure requirement of 4.5% of Net Sales. If a Checkers restaurant is in an area without an established advertising cooperative, Checkers may require the franchisee to spend the difference between the National Production Fund (NPF) contribution rate and 4.5% of Net Sales on local marketing. Alternatively, Checkers might direct these funds to an advertising purchasing collective controlled by Checkers or require the franchisee to join a cooperative created by Checkers.
It's also important to be aware of special regional promotions. Checkers can mandate participation in these promotions with 90 days' notice, and any associated regional advertising fees are in addition to the minimum 4.5% advertising expenditure. Western Licensees operate under a different agreement and are not obligated to contribute to the NPF or an advertising cooperative, and Checkers is not obligated to provide them with certain advertising and marketing support.