What is the 2025 Cooperative Contribution Rate for Checkers franchisees located in California?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]
| 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 franchisees located in California is 0.50%. This contribution is allocated towards advertising cooperatives, which are independently administered with assistance from Checkers and an outside accounting firm. These cooperatives handle local and regional advertising efforts.
Checkers franchisees are required to participate in these advertising cooperatives and adhere to their bylaws. However, franchisees can opt out of price advertising. The contribution rates can range from 0.5% to 1.85% of Net Sales, but are subject to change based on the cooperative's bylaws or a vote by its members. The financial statements and reports of these advertising cooperatives are available for franchisee review, ensuring transparency in how the funds are managed and spent.
It's important to note that contribution rates can vary among franchisees within the same cooperative, especially for restaurants in non-traditional locations like Walmart stores. These locations may have lower contribution levels due to different customer flows. While the cooperative contribution is 0.50% for California, this rate is subject to change, and franchisees should stay informed about any adjustments through the cooperative's bylaws and communications.