Does Checkersrallys have the right to change or dissolve advertising cooperatives?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to establish local and/or regional advertising cooperatives for Checkers Restaurants and/or Rally's Restaurants in your local or regional area, covering such geographical areas as we may designate from time to time. Currently, geographical areas for co-ops are determined by our marketing department and we implement a co-op if we determine in our sole discretion that a percentage of Net Sales of all Restaurants in the area can buy sufficient rating points in television, radio, outdoor, print and digital/social or some appropriate combination. We have the right in our sole discretion to form, change, dissolve or merge advertising cooperatives.
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, Checkersrallys retains significant authority over advertising cooperatives. Checkersrallys has the right to establish local and regional advertising cooperatives covering geographical areas that Checkersrallys designates. These areas are determined by the marketing department, and a co-op is implemented if Checkersrallys determines that a percentage of Net Sales of all Restaurants in the area can buy sufficient rating points in media such as television, radio, outdoor, print, and digital/social media.
Importantly, Checkersrallys maintains the right to form, change, dissolve, or merge advertising cooperatives at its sole discretion. This gives Checkersrallys considerable control over the advertising strategies and resources available to franchisees in different regions.
As a prospective franchisee, it is important to understand that Checkersrallys can alter the advertising landscape in your area by modifying or even eliminating the advertising cooperative. This could impact your local advertising efforts and potentially shift more responsibility onto individual franchisees if a cooperative is dissolved.