What was the 2025 cooperative contribution rate for the Atlanta market for Checkersrallys?
Checkersrallys 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 Checkersrallys's 2025 Franchise Disclosure Document, the cooperative contribution rate for the Atlanta market is 1.85%. This means that a Checkersrallys franchisee in Atlanta would be required to contribute 1.85% of their net sales to the local advertising cooperative. These cooperatives are independently administered with assistance from Checkersrallys and an outside accounting firm.
Advertising cooperatives allow franchisees to pool their funds for more effective local advertising campaigns. These cooperatives can use various media, including TV, radio, and digital platforms. However, the contribution rates and cooperative structures can change, as decisions are generally made by a majority vote based on one vote per restaurant. Checkersrallys may control the cooperative in certain areas where company-owned restaurants constitute the majority.
It's important to note that while the standard contribution rate for Atlanta is 1.85%, this rate is subject to change. Additionally, some franchisees, such as those operating within Walmart stores or other non-traditional sites, may have different contribution levels. Franchisees should review the co-op's bylaws to understand how funds are managed and how decisions are made.
The cooperative contribution is credited toward the 4.5% advertising expenditure required by the Franchise Agreement. However, Checkersrallys can require participation in special promotions with additional fees that are not credited towards the 4.5% advertising expenditure. Franchisees should factor this advertising expense into their financial projections and be aware of the potential for changes in contribution rates.