Does a reduced cooperative contribution level for a Checkers franchisee apply to special regional promotions?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
You must contribute such amounts to the advertising cooperative(s) as they determine from time to time in accordance with the cooperative's bylaws, provided that: (i) if no cooperative exists in the geographic area of the Franchised Restaurant upon the Effective Date, then your obligation to contribute to any future cooperative that covers the Franchised Restaurant will require you to contribute only fifty percent (50%) of the then current amount that other members in the cooperative (whose Restaurants are not operating, or to be operated, in a Non-Traditional Site) are obligated to contribute; (ii) if a cooperative exists in the market area of the Premises upon the Effective Date, we will exert our best efforts to ensure that such cooperative revises its bylaws to allow, and/or specifically approves, you to pay a reduced contribution level as specified in subpart (i); and (iii) any such reduction in your cooperative contribution level under the preceding subpart (i) will neither apply to your required participation in any special regional promotion (in which promotion you must fully participate as contemplated below in this Section 10.02), nor reduce your minimum total five percent (5%) combined advertising expenditure obligation described above in this Section 10.02.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, a reduced cooperative contribution level does not apply to special regional promotions. The FDD specifies that even if a Checkers franchisee benefits from a reduced contribution rate to a local or regional advertising cooperative, they must still fully participate in any special regional promotion.
This means that Checkers franchisees cannot apply their reduced contribution benefit to special regional promotions. They are obligated to contribute fully to these promotions as determined by Checkers. This obligation ensures that all franchisees, regardless of their standard cooperative contribution level, participate equally in regional marketing efforts.
This requirement ensures that Checkers can effectively execute large-scale regional marketing campaigns with full participation from all franchisees. It also ensures that all franchisees contribute their fair share to these special promotions, regardless of any pre-existing agreements for reduced contributions to the general advertising cooperative.