What determines the cost of Marketing, Advertising, Promotional and Point-of-Purchase materials for a Checkersrallys Restaurant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (See Note 1) |
|---|---|---|---|
| Local Advertising Fee (see Notes 5 and 6) | The difference between the current NPF contribution rate and 4.5% of your Net Sales. | Must be spent on advertising and promotion during each of your fiscal quarters. | If your Franchised Restaurant is located in a geographical area where we have not established an advertising cooperative, then, we may require you contribute to an advertising purchasing collective that we establish and control. |
| Delivery Administration Fee | 2% of the total price charged to a customer that orders certain approved food, beverage and other items ("Delivered Products") from a third-party delivery service provider approved by us (each a "DSP"). | Bi-monthly. | Payable only if you are eligible to provide delivery services, elect to provide delivery and enter into the delivery services participation agreement (the "Delivery Program"). See Note 7. |
| Order Ahead Program Administration Fee | 2% of the total price charged to a customer that orders certain approved food, beverage and other items (the "Order Ahead Products") from our optional "Order Ahead Program." | Bi-monthly. | Payable only if you are eligible and elect to enter the Order Ahead Program, which allows customers to pre-order the Order Ahead Products for pick-up from Restaurants. See Note 8. |
| Marketing, Advertising, Promotional and Point-of-Purchase ("POP") Materials | Actual costs, which may vary per Restaurant based on merchandising capacity and the materials you request. | Payable monthly. | Advertising materials not prepared by us must be submitted for approval prior to distribution. |
Source: Item 6 — OTHER FEES (FDD pages 21–29)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the cost of Marketing, Advertising, Promotional and Point-of-Purchase ("POP") Materials is based on actual costs, which may vary per restaurant. The cost depends on the restaurant's merchandising capacity and the specific materials requested by the franchisee. These costs are payable monthly.
It's important to note that any advertising materials not prepared by Checkersrallys must be submitted for approval before distribution. This ensures that all marketing efforts align with the brand's standards and guidelines. Franchisees should factor in these variable costs when budgeting for their restaurant's ongoing marketing and promotional activities.
This approach, where franchisees bear the actual cost of materials, is common in franchising. It allows for customization based on local market needs and individual restaurant characteristics. However, it also places the responsibility on the franchisee to manage these costs effectively and to ensure compliance with Checkersrallys's advertising standards.