Under what condition will Checkersrallys implement an advertising co-op?
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' 2025 Franchise Disclosure Document, Checkersrallys has the right to establish local or regional advertising cooperatives. These co-ops can cover geographical areas that Checkersrallys designates.
Checkersrallys will implement a co-op if the marketing department determines that a percentage of Net Sales from all restaurants in the area can buy sufficient rating points in media such as television, radio, outdoor advertising, print, and digital/social media. The specific combination of media is determined by Checkersrallys.
Checkersrallys retains the right to form, change, dissolve, or merge advertising cooperatives at its sole discretion. Franchisees are required to participate in these advertising cooperatives, adhering to their bylaws and contributing the amounts determined by the co-ops.