factual

What is the range of net restaurant sales that Checkersrallys franchisees contribute to advertising co-ops?

Checkersrallys Franchise · 2025 FDD

Answer from 2025 FDD Document

contributions to the Fund represent 0.5% of net restaurant sales, while contributions to the advertising co-ops range from 0.5% to 4.25% of net restaurant sales.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)

What This Means (2025 FDD)

According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees contribute to advertising co-ops based on a percentage of their net restaurant sales. These co-ops are established to create and produce advertising that benefits both company-operated and franchised restaurants.

The document specifies that contributions to these advertising co-ops can range from 0.5% to 4.25% of net restaurant sales. This means that for every dollar of net sales a Checkersrallys restaurant makes, between 0.5 cents and 4.25 cents will go towards the advertising co-op.

This contribution is in addition to the 0.5% of net restaurant sales that franchisees pay to the Checkers/Rally's National Production Fund (NPF). The NPF is also used for advertising purposes. It is important for prospective franchisees to understand these advertising costs, as they will impact the overall profitability of their Checkersrallys franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.