What is the 2025 Cooperative Contribution Rate for Checkersrallys franchisees located in California?
Checkersrallys 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 Checkersrallys's 2025 Franchise Disclosure Document, the cooperative contribution rate for franchisees located in California is 0.50%. This contribution is a percentage of net sales and is allocated towards advertising cooperatives, which are independently managed with assistance from Checkersrallys and an outside accounting firm. These rates are subject to change. Decisions regarding the advertising cooperatives are generally determined by a majority vote, with each restaurant having one vote.
It's important to note that while the standard contribution rate for California is 0.50%, some franchisees may contribute at a different rate if authorized by the cooperative. This could apply, for example, to restaurants operating within Walmart stores or other non-traditional sites, where a lower contribution level might be applicable due to different customer flows.
Prospective franchisees should be aware that these cooperative contribution rates are in addition to other advertising expenses, such as the National Production Fund (NPF), which is capped at 3% of net sales. Franchisees are also required to spend up to 4.5% of net sales on advertising and promoting their franchised restaurant. Understanding the specific advertising requirements and potential variations in contribution rates is crucial for budgeting and financial planning.