Are contributions to local and regional advertising cooperatives credited toward the 4.5% advertising expenditures required by the Checkersrallys Franchise Agreement?

According to Checkersrallys's 2025 Franchise Disclosure Document, contributions to local and regional advertising cooperatives are generally credited toward the 4.5% advertising expenditures required by the Franchise Agreement. This means that if a franchisee participates in a local or regional advertising cooperative, the money they contribute to that co-op counts towards their overall advertising obligation to Checkersrallys.

However, there is an exception to this rule. If Checkersrallys provides the franchisee and the local or regional advertising cooperative with 90 days' notice of a special promotion, the franchisee must participate in that promotion and pay any advertising fees assessed in connection with it. These special promotion advertising fees are in addition to the standard 4.5% advertising expenditure requirement and are not credited towards it.

It's also important to note that Checkersrallys will not require a franchisee to spend more than 4.5% of Net Sales during each fiscal quarter on advertising and promoting the franchised restaurant. However, if a franchisee is a member of a local or regional advertising cooperative with required contribution rates that, when added to the National Production Fund (NPF) contributions, exceed 4.5% of Net Sales, the franchisee's advertising spending could exceed this amount.