Can a Checkersrallys franchisee choose not to participate in price advertising within the co-op?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
You must participate in such advertising cooperatives and its programs (other than price advertising, as to which you may choose not to participate) and abide by its by-laws. You must contribute such amounts to the advertising cooperative(s) as they determine from time to time in accordance with their by-laws. In circumstances that reasonably may warrant varied participation or contribution levels among certain members (for example, restaurants at Non-Traditional Sites that generally receive less benefit from a cooperative's local advertising), we may attempt to work with the cooperative's membership to revise its by-laws or other policies, as we deem appropriate. Any Restaurants owned by us or any of our affiliates located in such designated local or regional area(s) will contribute to the cooperative(s) on the same basis. Contributions to local and regional advertising cooperatives
are credited toward the 4.5% advertising expenditures required by the Franchise Agreement; however, if we provide you and your local and/or regional advertising cooperative 90 days' notice of a special promotion, you must participate in such promotion and pay to us any advertising fees assessed in connection with the promotion, beginning on the effective date of such notice and continuing until such promotion is concluded. Any such regional advertising fees shall be in addition to, and not credited towards, the 4.5% advertising expenditure required by the Franchise Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees have the option to opt out of price advertising within their advertising cooperative. However, franchisees are required to participate in all other advertising cooperative programs and adhere to the cooperative's bylaws.
This flexibility regarding price advertising allows Checkersrallys franchisees to tailor their marketing strategies to their specific local market conditions and business objectives. For instance, a franchisee might choose not to participate in price-focused advertising if they believe their restaurant's strengths lie in other areas, such as service quality or unique menu offerings.
It's important to note that while franchisees can opt out of price advertising, they must still contribute to the advertising cooperative as determined by its bylaws. The amount of these contributions can change over time. Checkersrallys may also implement special promotions with 90 days' notice, in which case franchisees are required to participate and pay associated advertising fees, which are in addition to the standard advertising expenditure requirements.