What was the 2025 cooperative contribution rate for the Atlanta market for Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Market | 2025 Cooperative Contribution Rate |
|---|---|
| Atlanta | 1.85% |
| Augusta | 1.85% |
| Baltimore | 1.85% |
| Bowling Green | 1.85% |
| California | 0.50% |
| Chicago | 0.00% |
| Cincinnati | 1.85% |
| Detroit | 1.85% |
| Evansville | 1.85% |
| Flint | 1.85% |
| Grand Rapids | 1.85% |
| Houston | 1.85% |
| Indianapolis | 1.85% |
| Jacksonville | 1.85% |
| Lexington | 1.85% |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the cooperative contribution rate for the Atlanta market was 1.85%. This means that Checkers franchisees operating in the Atlanta area were required to contribute 1.85% of their net sales to the local advertising cooperative. These cooperatives are designed to pool funds from multiple franchisees in a specific geographic area to conduct more effective advertising and promotional campaigns.
Checkers' advertising cooperatives are independently administered, with assistance from Checkers and an outside accounting firm. Financial statements and reports are available for franchisee review. While decisions are generally made by a majority vote based on one vote per restaurant, Checkers may control the cooperative in areas where company-owned restaurants constitute the majority. The contribution rates can range from 0.5% to 1.85% of net sales and are subject to change based on the cooperative's bylaws or a vote by its members.
It's important to note that some Checkers franchisees may contribute at a rate that differs from the standard rate if permitted by the cooperative. For example, restaurants operating within Walmart stores may pay a lower contribution level. Franchisees should also be aware that their total advertising spending, including contributions to the National Production Fund (NPF) and local cooperatives, could exceed 4.5% of net sales. If contributions to the NPF and local advertising cooperative are less than 4.5% of net sales, the franchisee must spend the difference on local advertising and promotion for their franchised restaurant.