What happens to the funds remaining in an All Dogs Unleashed Advertising Cooperative upon its dissolution?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.5.3. Franchisor has the exclusive right to create, dissolve, and merge each Advertising Cooperative created, in its discretion, and to create and amend the organizational and governing documents related thereto, provided that such documents shall: (a) operate by majority vote, with each ALL DOGS UNLEASHED (including Facilities owned by Franchisor or its Affiliates) entitled to one vote; (b) entitle Franchisor to cast one vote (in addition to any votes it may be entitled to on account of its operation of Facilities in the area served by the Advertising Cooperative); (c) permit the members of the Advertising Cooperative, by majority vote, to determine the amount of required contributions; and (d) provide that any funds left in the Cooperative at the time of dissolution shall be returned to the members in proportion to their contributions during the 12-month period immediately preceding termination.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, any funds remaining in an Advertising Cooperative at the time of its dissolution will be returned to the members. These funds will be distributed proportionally based on each member's contributions during the 12-month period immediately preceding the termination. This ensures that franchisees receive back a share of the remaining funds that is aligned with their recent investment in the cooperative's advertising efforts.
This arrangement provides a degree of financial security and fairness for franchisees participating in the Advertising Cooperative. If the cooperative is dissolved, franchisees are not simply forfeiting their contributions. Instead, they have a right to a proportional return of the remaining funds, which can then be reinvested in their local marketing efforts or used for other business needs. This proportional return mechanism incentivizes participation in the cooperative, as franchisees know that their contributions are not lost if the cooperative ceases operations.
It's important to note that All Dogs Unleashed has the exclusive right to create, dissolve, and merge each Advertising Cooperative. While the governing documents of the cooperative must allow for the return of funds upon dissolution, the decision to dissolve the cooperative rests solely with the franchisor. Franchisees should consider this when evaluating the potential long-term benefits of participating in an Advertising Cooperative, as its existence is not guaranteed.
Prospective franchisees should inquire about the typical lifespan of Advertising Cooperatives within the All Dogs Unleashed system and the circumstances under which they might be dissolved. Understanding the franchisor's past practices and future intentions regarding these cooperatives can help franchisees make informed decisions about their participation and budgeting for local marketing expenditures.