How are contributions to the All Dogs Unleashed advertising cooperative maintained and administered?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
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Advertising Cooperative
We can designate any geographic area in which two or more company-owned or franchised Facilities are located as a region for an advertising cooperative ("Cooperative"). If a Cooperative is established for an area in which your Franchised Business is located, you must become a member of the Cooperative and participate in the Cooperative. Cooperative contributions will be maintained and administered under the Cooperative's governing documents, and the Cooperative will be operated solely as a conduit for the collection and expenditure of advertising contributions. Contribution levels will be established by majority vote, with each Facility entitled to one vote. We anticipate that franchisor-owned Facilities will contribute to the fund on the same basis as franchisees. Any amounts contributed to an Advertising Cooperative are credited against your Local Marketing requirement.
We have the sole right to form, change, dissolve, and merge Cooperatives and to create and amend any organizational and governing documents of any Cooperative. As no Cooperatives have yet been established for the franchise system, governing documents are not available for your review. Once established, we may terminate and/or dissolve the Cooperative at any time. The Cooperative will not be terminated, however, until all monies in the Cooperative have been expended for authorized purposes or returned to contributing Facilities (whether franchised or company or affiliate-owned), without interest, on the basis determined by a majority vote of its members. Each Cooperative must prepare annual, unaudited financial statements, which will be made available to its contributing members.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 20–26)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, if an advertising cooperative is established in the area where a franchisee's business is located, the franchisee must become a member and participate in it. The cooperative contributions will be maintained and administered according to the cooperative's governing documents. The cooperative will operate solely as a conduit for collecting and spending advertising contributions. Contribution levels are established by a majority vote, with each facility having one vote. All Dogs Unleashed anticipates that franchisor-owned facilities will contribute to the fund on the same basis as franchisees. Any amounts contributed to an Advertising Cooperative are credited against the franchisee's Local Marketing requirement.
All Dogs Unleashed has the sole right to form, change, dissolve, and merge cooperatives and to create and amend any organizational and governing documents. As no cooperatives have yet been established for the franchise system, governing documents are not available for review. All Dogs Unleashed may terminate or dissolve the cooperative at any time, but not until all monies have been expended for authorized purposes or returned to contributing facilities, whether franchised, company-owned, or affiliate-owned, without interest, based on a majority vote of its members.
Each cooperative must prepare annual, unaudited financial statements, which will be made available to its contributing members. This ensures transparency in how the advertising funds are managed and spent. The franchisee should inquire about the specific governing documents and procedures that will be in place once a cooperative is established to fully understand their rights and obligations.