What does the required advertising expenditure for Checkersrallys include?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTE 3: We require you to spend 4.5% of your Net Sales on advertising and marketing your Franchised Restaurant, which includes your NPF contribution, your contribution to a regional or local advertising cooperative, and amounts you spend marketing your Franchised Restaurant in your local market or that we require you to contribute to an advertising purchasing collective that we establish and control. Your advertising expenditures may exceed 4.5% of your Net Sales if you are a member of a regional or local advertising cooperative whose required contribution rate, when added to your NPF contribution rate, exceeds 4.5%. Your advertising expenditures also may exceed 4.5% of your Gross Sales if in addition to your NPF contribution rate and your regional or local advertising cooperative contribution, you elect to spend an additional amount marketing your Franchised Restaurant in your local market.
Source: Item 6 — OTHER FEES (FDD pages 21–29)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees are required to spend 4.5% of their Net Sales on advertising and marketing. This expenditure encompasses several components. It includes contributions to the National Production Fund (NPF), as well as contributions to any regional or local advertising cooperatives that may exist. Furthermore, the advertising expenditure includes any amounts the franchisee spends marketing their Checkersrallys restaurant in their local market, or contributions to an advertising purchasing collective established and controlled by Checkersrallys.
It's important to note that the franchisee's advertising expenditures may exceed the 4.5% minimum under certain circumstances. If a franchisee is a member of a regional or local advertising cooperative, and the required contribution rate, when added to the NPF contribution rate, surpasses 4.5% of Net Sales, the franchisee's total advertising expenditure will be higher. Similarly, if a franchisee chooses to spend an additional amount marketing their restaurant locally, beyond the NPF and cooperative contributions, their total expenditure will also exceed the minimum.
The current NPF contribution rate is 2.65% of Net Sales. If a Checkersrallys restaurant is located in an area without an advertising cooperative, the franchisee may be required to spend the difference between the NPF contribution rate and the 4.5% minimum on local marketing. Alternatively, Checkersrallys may require the franchisee to contribute that difference to an advertising purchasing collective managed by Checkersrallys. The local advertising fee is the difference between the current NPF contribution rate and 4.5% of Net Sales and must be spent on advertising and promotion during each of the franchisee's fiscal quarters.