Does Checkers have the right to change or dissolve advertising cooperatives?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to establish local and/or regional advertising cooperatives for Checkers Restaurants and/or Rally's Restaurants in your local or regional area, covering such geographical areas as we may designate from time to time. Currently, geographical areas for co-ops are determined by our marketing department and we implement a co-op if we determine in our sole discretion that a percentage of Net Sales of all Restaurants in the area can buy sufficient rating points in television, radio, outdoor, print and digital/social or some appropriate combination. We have the right in our sole discretion to form, change, dissolve or merge advertising cooperatives.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers retains the right to modify or terminate advertising cooperatives. Checkers has the authority to establish local and regional advertising cooperatives for Checkers and Rally's restaurants, covering geographical areas that Checkers designates.
Checkers' marketing department determines the geographical areas for co-ops. Checkers implements a co-op if it determines that a percentage of Net Sales from all restaurants in the area can buy sufficient rating points in television, radio, outdoor, print, and digital/social media.
Checkers has the sole discretion to form, change, dissolve, or merge advertising cooperatives. This gives Checkers significant control over the advertising strategies and resources available to franchisees in different regions. Franchisees are required to participate in these advertising cooperatives and adhere to their bylaws, contributing amounts as determined by the cooperatives.