What is the general range of cooperative contribution rates for Checkersrallys?
Checkersrallys 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 Checkersrallys'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 contribution supports advertising cooperatives, which are independently managed with assistance from Checkersrallys and an external accounting firm.
For prospective franchisees, this means that a portion of their net sales will be allocated to a cooperative advertising fund, which is used for marketing and promotional activities in their local or regional area. The exact percentage can vary, and franchisees should review the co-op's by-laws and financial statements to understand how the funds are managed and spent. Franchisees have a vote in the cooperative's decisions, although Checkersrallys may exert control in areas where company-owned restaurants constitute a majority.
It's important to note that some franchisees may contribute at different rates if permitted by the cooperative. For instance, restaurants located within Walmart stores or other non-traditional sites might have lower contribution levels due to differences in customer flow and the impact of cooperative promotions. Franchisees should inquire about the specific contribution rates applicable to their location and any potential variations.
The FDD also provides a snapshot of cooperative contribution rates for specific markets in 2025. For example, markets like Atlanta, Augusta, and Baltimore have a rate of 1.85%, while California is listed at 0.50%, and Chicago at 0.00%. These rates are subject to change, so franchisees should verify the current rates with Checkersrallys and the relevant advertising cooperative.