Are contributions to local and regional advertising cooperatives credited toward the five percent advertising expenditures required by Checkersrallys?

According to Checkersrallys's 2025 Franchise Disclosure Document, contributions to local and regional advertising cooperatives can be credited toward the required advertising expenditures. Specifically, these contributions count toward either the 4.5% or 5% advertising expenditure requirement, depending on the specific franchise agreement terms. However, this credit does not apply to special regional advertising fees, which are in addition to the standard advertising expenditure requirement.

Checkersrallys retains the right to establish local and/or regional advertising cooperatives, and franchisees are generally required to participate and adhere to the cooperative's bylaws. The amount franchisees must contribute is determined by the cooperative. If a Checkersrallys restaurant is in an area without an advertising cooperative, the franchisee may be required to spend the difference between the NPF contribution and either 4.5% of net sales on local marketing or contribute to an advertising purchasing collective controlled by Checkersrallys.

For franchisees operating in Non-Traditional Sites, there may be an opportunity to contribute only 50% of the standard amount to a cooperative, although this reduced contribution will not decrease the minimum total 5% advertising expenditure obligation. Checkersrallys also maintains the right to approve all advertising and promotional materials to ensure brand consistency. This system allows for both national and local advertising efforts, but franchisees need to be aware of the specific requirements and potential additional costs for regional promotions.