What is the range of net restaurant sales that Checkers franchisees contribute to advertising co-ops?

According to Checkers' 2025 Franchise Disclosure Document, both the company-operated restaurants and franchisees contribute to advertising through two avenues: the National Production Fund (NPF) and advertising co-ops. The contribution to the NPF is a fixed 0.5% of net restaurant sales. However, the contribution to advertising co-ops varies, ranging from 0.5% to 4.25% of net restaurant sales. This means a Checkers franchisee's total advertising contribution, combining both the NPF and co-op, will be between 1.0% and 4.75% of their net sales. The NPF is used for creating and producing advertising for the benefit of both company-operated and franchised restaurants.

The advertising co-ops are independently run, and Checkers only consolidates those it controls based on voting interests. Co-ops not controlled by Checkers are accounted for similarly to the NPF. This implies that franchisees have some level of autonomy in how their advertising dollars are spent within their local markets, as long as Checkers doesn't exert direct control over the co-op.

For a prospective Checkers franchisee, this means budgeting for advertising expenses that could range from a minimum of 1.0% to a maximum of 4.75% of net sales. The actual percentage will depend on the specific advertising co-op arrangements in their area. It is important for potential franchisees to understand the structure and activities of their local advertising co-op to effectively plan their marketing strategies and budgets. Franchisees should inquire about the specific requirements and guidelines for advertising contributions in their specific market to accurately forecast expenses.