What royalty do Checkersrallys Western Licensees pay, and what advertising obligations do they have?

According to Checkersrallys's 2025 Franchise Disclosure Document, Western Licensees operate under a different agreement than standard franchisees. These Western Licensees are required to pay a royalty fee of 1% of Net Sales. Net Sales includes all revenue derived from operating the franchised restaurant, including sales of food, beverages, and services, whether from cash, credit, or other transactions, excluding sales taxes and reduced by documented refunds or discounts.

Unlike standard Checkersrallys franchisees, Western Licensees have no obligation to contribute to the National Production Fund (NPF) or to a regional or local advertising cooperative. The standard franchisees are required to spend 4.5% of Net Sales on advertising and marketing, which includes contributions to the NPF, regional or local advertising cooperatives, and local market advertising. The current NPF contribution rate for standard franchisees is 2.65% of Net Sales.

Checkersrallys is also not obligated to provide certain advertising and marketing support to Western Licensees. This difference in advertising obligations and support is a significant factor for prospective franchisees to consider when evaluating the Western License Agreement versus the standard franchise agreement. Prospective franchisees should inquire about the specific advertising and marketing support they can expect to receive and the strategies they will need to implement on their own.