How does Checkersrallys determine the geographical areas for advertising co-ops?
Checkersrallys 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 Checkersrallys' 2025 Franchise Disclosure Document, the geographical areas for advertising cooperatives are determined by the marketing department. Checkersrallys 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 various media, such as television, radio, outdoor, print, and digital/social media.
Checkersrallys retains the right to form, change, dissolve, or merge advertising cooperatives at its sole discretion. This means that the structure and existence of a co-op in a franchisee's area can change over time based on Checkersrallys' decisions. Franchisees are required to participate in these advertising cooperatives and adhere to their bylaws, contributing amounts as determined by the co-ops.
It's important to note that Checkersrallys may attempt to revise the co-op's bylaws or policies to accommodate varied participation or contribution levels among certain members, such as restaurants at Non-Traditional Sites. Any restaurants owned by Checkersrallys or its affiliates in the designated local or regional area will contribute to the cooperative on the same basis as franchisees. The contribution rates for these cooperatives generally range from 0.5% to 1.85% of Net Sales and are subject to change.