What are franchisees required to do to promote and enhance their Checkersrallys Franchised Restaurant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
You must submit to us for our prior approval, samples of all advertising and promotional materials not prepared or previously approved by us and which vary from our standard advertising and promotional materials. You may not use any advertising or promotional materials that we have disapproved.
We have the right to establish local and/or regional advertising cooperatives for "Checkers" and/or "Rally's" restaurants in your local or regional area, covering such geographical areas as we may designate at any time and from time to time. You must participate in such advertising cooperative 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 at any time and from time to time in accordance with their by-laws. 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 such local and regional advertising cooperatives are credited toward the 4.5% advertising expenditures required by this Section; however, if we provide you and your local and/or regional advertising cooperative ninety (90) days' notice of a special regional promotion, you must participate in such promotion and pay to us any regional advertising fees assessed in connection therewith, beginning on the effective date of such notice and continuing until such regional promotion is concluded. Any such special regional advertising fees shall be in addition to, and not credited towards, the 4.5% advertising expenditure required by this Section.
If your Franchised Restaurant is located in a geographical area where we have not established an advertising cooperative, then, at our option, you will be required to either (i) spend the difference between the current NPF contribution rate and 4.5% of your Net Sales marketing your Franchised Restaurant in your local market, (ii) contribute to an advertising purchasing collective that we establish and control (which may not be governed by by-laws similar to a typical local or regional advertising cooperative where you will have voting rights), or (iii) join a local or regional cooperative that we create in your designated marketing area. If we require you to contribute to an advertising purchasing collective, we will provide you with an accounting of the amount spent in your designated marketing area.
We require you to sell all food, beverage and other products and services that we determine from time to time to be appropriate for your Franchised Restaurant, including required menu items as we may set from time to time. From time to time, we may designate menu items as being required or optional and also may introduce test menu items on a required or optional basis. You are not restricted as to the customers whom you may serve at the Franchised Restaurant.
We may conduct market research to determine consumer trends and salability of new food products and services. You must participate in our market research programs by test marketing new food products and services in your restaurant and providing us with timely reports and other relevant information regarding such market research. You must purchase a reasonable quantity of such test products and make a reasonable effort to sell them.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 64–65)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees have several obligations to promote and enhance their restaurants. Checkersrallys requires franchisees to sell all food, beverage, and other products and services that Checkersrallys deems appropriate, including required menu items. Franchisees must also participate in Checkersrallys's market research programs by test marketing new food products and services and providing timely reports. They are required to purchase a reasonable quantity of such test products and make a reasonable effort to sell them.
Checkersrallys franchisees must submit samples of all advertising and promotional materials not prepared or previously approved by Checkersrallys for prior approval, and may not use any disapproved materials. Franchisees are typically required to participate in local and/or regional advertising cooperatives, contributing amounts as determined by the cooperative's by-laws. These contributions are credited toward the 4.5% advertising expenditures required. However, Checkersrallys can require participation in special regional promotions with additional fees.
If a Checkersrallys restaurant is in an area without an advertising cooperative, franchisees must either spend the difference between the National Production Fund (NPF) contribution rate and 4.5% of net sales on local marketing, contribute to an advertising purchasing collective established and controlled by Checkersrallys, or join a local or regional cooperative created in their designated marketing area. This ensures consistent brand promotion and adherence to Checkersrallys's marketing standards, with flexibility based on the restaurant's location and the presence of advertising cooperatives.