Can the contribution rate to the Angry Chickz Co-op Advertising Region be changed?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and other members of the Co-op Advertising Region, whose agreements require their participation, will contribute to the Co-op Advertising Region such minimum amount as may be determined by Company, but such minimum amount designated by Company but is not expected to exceed 1%
of Gross Sales (the "Co-op Minimum"); provided however, the rate of contribution may be changed from time to time upon the affirmative vote or consent of at least a majority of the voting power of the Co-op Advertising Region, but the Co-op Advertising Region may not reduce the contribution rate below any minimum established by Company. Contributions to the Co-op Advertising Region shall be in addition to the Local Advertising Expenditure.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the contribution rate to the Co-op Advertising Region can be changed. Franchisees and other members of the Co-op Advertising Region contribute a minimum amount determined by Angry Chickz, which is not expected to exceed 1% of Gross Sales.
The contribution rate may be changed if a majority of the voting power within the Co-op Advertising Region votes or consents to the change. However, the Co-op Advertising Region is not allowed to reduce the contribution rate below any minimum that Angry Chickz establishes. These contributions are separate from the Local Advertising Expenditure, which is a minimum of 1% of gross sales.
This means that while franchisees have some say in adjusting the co-op advertising contribution rate, Angry Chickz retains ultimate control by setting a floor below which the rate cannot be reduced. Prospective franchisees should consider this when evaluating the costs and control they will have over advertising expenditures. The ability to adjust the rate offers some flexibility, but the franchisor's minimum ensures a baseline level of funding for regional advertising efforts.