When are Cooperative Advertising fees due for a Checkersrallys franchise?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (See Note 1) |
|---|---|---|---|
| Cooperative Advertising (See Notes 4 and 5) | Determined by your local or regional advertising cooperative. | Monthly, on the 5th day of each month. | Payments to local or regional advertising cooperatives are credited toward your 4.5% advertising expenditure requirement. |
Source: Item 6 — OTHER FEES (FDD pages 21–29)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Cooperative Advertising fees are due monthly, specifically on the 5th day of each month. These payments are directed towards local or regional advertising cooperatives and are credited toward the franchisee's overall advertising expenditure requirement, which is 4.5% of Net Sales.
Checkersrallys requires franchisees to spend 4.5% of their Net Sales on advertising and marketing. This expenditure can be fulfilled through contributions to the National Production Fund (NPF), payments to regional or local advertising cooperatives, or direct spending on local marketing efforts. If a franchisee's combined NPF contribution and cooperative advertising fees do not meet the 4.5% threshold, they must allocate the remaining amount to local advertising or contribute to an advertising purchasing collective established and controlled by Checkersrallys.
It's important to note that Checkersrallys may introduce special regional promotions with 90 days' notice, requiring franchisees to participate and pay additional regional advertising fees. These special fees are not credited towards the standard 4.5% advertising expenditure requirement. The decisions of advertising cooperatives are generally determined by a majority vote, with each restaurant having one vote. However, certain critical decisions, such as contribution rate increases, may be based on one vote per entity, not per restaurant.