What is the spending requirement for the Local Advertising Fee for a Checkersrallys franchise?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (See Note 1) |
|---|---|---|---|
| Local Advertising Fee (see Notes 5 and 6) | The difference between the current NPF contribution rate and 4.5% of your Net Sales. | Must be spent on advertising and promotion during each of your fiscal quarters. | If your Franchised Restaurant is located in a geographical area where we have not established an advertising cooperative, then, we may require you contribute to an advertising purchasing collective that we establish and control. |
Source: Item 6 — OTHER FEES (FDD pages 21–29)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the Local Advertising Fee is the difference between the current National Production Fund (NPF) contribution rate and 4.5% of your Net Sales. This fee must be spent on advertising and promotion during each of your fiscal quarters. The NPF contribution is currently 2.65% of Net Sales, but can be up to 3%.
For a Checkersrallys franchisee, this means that if the NPF contribution remains at 2.65%, the Local Advertising Fee would be 1.85% of Net Sales (4.5% - 2.65% = 1.85%). This amount must be used for local advertising efforts. If the NPF contribution increases, the Local Advertising Fee would decrease accordingly, but the total advertising expenditure remains at 4.5% of Net Sales.
If Checkersrallys has not established an advertising cooperative in your geographical area, they may require you to contribute to an advertising purchasing collective that they establish and control. This ensures that even without a cooperative, local advertising efforts are maintained. The 4.5% advertising expenditure requirement can be met through a combination of the NPF contribution, payments to a regional or local advertising cooperative, and amounts spent marketing your Franchised Restaurant in your local market or contributed to an advertising purchasing collective controlled by Checkersrallys.