What is the process for changing the contribution rate to the Angry Chickz Co-op Advertising Region?
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 with the affirmative vote or consent of at least a majority of the voting power within that Co-op Advertising Region. Franchisees and other members of the Co-op Advertising Region are required to contribute a minimum amount determined by Angry Chickz, which is not expected to exceed 1% of Gross Sales.
However, the Co-op Advertising Region cannot reduce the contribution rate below any minimum established by Angry Chickz. This means that while the members can vote to increase or maintain the contribution rate, Angry Chickz retains control over setting a floor below which the rate cannot be lowered. The contributions to the Co-op Advertising Region are in addition to the Local Advertising Expenditure, which is a separate requirement.
This structure gives franchisees a voice in determining the advertising budget for their region, but it also ensures that Angry Chickz maintains a degree of control over the overall advertising spend. Prospective franchisees should consider that while they can participate in decisions about the co-op advertising budget, Angry Chickz ultimately sets the minimum contribution level.