Under what conditions must a Checkersrallys franchisee participate in a special regional promotion and pay regional advertising fees?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, if we provide you and any local or regional advertising cooperative with 90 days' notice of a special regional promotion, you must participate in the promotion and pay us any regional advertising fees beginning on the effective date of the notice and continuing until the regional promotion ends. Any special regional advertising fees will be in addition to, and not credited towards, the minimum 4.5% advertising expenditure we currently require you to make.
Source: Item 6 — OTHER FEES (FDD pages 21–29)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee must participate in a special regional promotion and pay regional advertising fees if Checkersrallys provides the franchisee and any local or regional advertising cooperative with 90 days' notice. This participation and fee payment begin on the effective date of the notice and continue until the regional promotion concludes.
The special regional advertising fees are in addition to the minimum 4.5% advertising expenditure that Checkersrallys requires the franchisee to make. This means that franchisees cannot credit these regional advertising fees towards their existing advertising obligations; they are an additional cost.
This requirement ensures that Checkersrallys can implement coordinated regional marketing efforts, but it also means franchisees must be prepared to adjust their budgets and marketing strategies to accommodate these promotions. Franchisees should factor in the potential for these additional fees when assessing the overall cost of operating a Checkersrallys franchise and carefully review any notices related to regional promotions to understand the financial implications and participation requirements.