What is the general range of cooperative contribution rates for Checkers franchisees?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
The cooperative contribution rates generally range from 0.5% to 1.85% of Net Sales and they are subject to change at any time pursuant to the by-laws and/or vote of the cooperative or its governing members or executives. Some franchisees in a cooperative may contribute at a rate that varies from the standard contribution rate for the other franchisees in that cooperative if permitted or authorized by the cooperative, pursuant to the by-laws and/or rules of the particular cooperative, and/or by vote of the cooperative or its governing members or executives. By way of example, franchisees of Restaurants operating, or that will operate, within or at Walmart stores or other Non-Traditional Sites (as we may determine, in our sole discretion) may pay a lower contribution level to their local cooperatives than the general membership because, among other reasons, such restaurants often cater to separate customer flow not driven primarily by the promotions and campaigns executed by those franchisees' local cooperatives.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the cooperative contribution rates generally range from 0.5% to 1.85% of Net Sales. However, these rates are subject to change at any time based on the cooperative's by-laws or a vote by its members or executives. This means that a franchisee's contribution can fluctuate depending on decisions made at the cooperative level. Some franchisees may contribute at a rate that differs from the standard rate if permitted by the cooperative's rules or by a vote of its members. For example, franchisees operating within Walmart stores or other Non-Traditional Sites may pay a lower contribution level due to differences in customer flow.
Checkers franchisees are required to participate in advertising cooperatives and adhere to their by-laws, contributing amounts as determined by the cooperative. The FDD indicates that Checkers may attempt to work with the cooperative to revise by-laws or policies to accommodate varied participation or contribution levels among certain members, such as those at Non-Traditional Sites. Contributions to local and regional advertising cooperatives are credited toward the 4.5% advertising expenditures required by the Franchise Agreement. However, Checkers can implement special promotions with 90 days' notice, requiring franchisees to participate and pay additional advertising fees that are not credited towards the 4.5% requirement.
The cooperative contribution rates vary by market. For example, the 2025 cooperative contribution rate for Atlanta, Augusta, Baltimore, Bowling Green, Cincinnati, Detroit, Evansville, Flint, Grand Rapids, Houston, Indianapolis, Jacksonville, and Lexington is 1.85%. In California, the rate is 0.50%, while in Chicago and New York, it is 0.00%. In Louisville, MFL, New Orleans, St. Louis, Tampa, Toledo, and Washington, DC, the rate is 1.85%. Orlando has a rate of 2.00%. This variation highlights the importance of understanding the specific cooperative structure and contribution rates in the franchisee's local market.
Prospective Checkers franchisees should carefully review the by-laws of their local advertising cooperative to understand how contribution rates are determined and how they might change. They should also inquire about any planned special promotions or changes to the NPF that could affect their overall advertising expenditure requirements. Understanding these factors is crucial for budgeting and managing advertising expenses effectively.