factual

What is the purpose of an Advertising Cooperative for All Dogs Unleashed franchisees?

All_Dogs_Unleashed Franchise · 2025 FDD

Answer from 2025 FDD Document

9.5. Advertising Cooperatives.

  • 9.5.1. Franchisor may, from time to time, form local or regional advertising cooperatives ("Advertising Cooperative") to pay for the development, placement, and distribution of advertising for the benefit of Facilities located in the geographic region served by the Advertising Cooperative. Any Advertising Cooperative established by Franchisor will be operated solely as a conduit for the collection and expenditure of Advertising Cooperative fees for the foregoing purposes.
  • 9.5.2. If Franchisor forms an Advertising Cooperative for the region in which the Facility is located, you agree to participate in the Advertising Cooperative pursuant to the terms of this Section 9.5.
  • 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.
  • 9.5.4. You agree to be bound by all organizational and governing documents created by Franchisor and, at Franchisor's request, shall execute all documents necessary to evidence or affirm your

agreement. The Advertising Cooperative shall begin operating on a date determined in advance by Franchisor.

9.5.5. No advertising or promotional plans or materials may be used by the Advertising Cooperative or furnished to its members without Franchisor's prior approval. All advertising plans and materials must conform to the Standards and must be submitted to Franchisor for approval according to the procedures set forth in Section 9.1 of this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 49–158)

What This Means (2025 FDD)

According to All Dogs Unleashed's 2025 Franchise Disclosure Document, Advertising Cooperatives are formed to handle advertising development, placement, and distribution to benefit facilities within a specific geographic region. These cooperatives serve as a conduit for collecting and spending advertising fees for these purposes. If All Dogs Unleashed forms an Advertising Cooperative in the franchisee's region, participation is mandatory.

All Dogs Unleashed retains the exclusive right to create, dissolve, and merge these Advertising Cooperatives and to modify their governing documents. However, these documents must operate by majority vote, with each All Dogs Unleashed facility (including those owned by the franchisor) having one vote. The franchisor also gets an additional vote. Members of the cooperative determine the amount of required contributions by majority vote, and any funds remaining upon dissolution are returned to members based on their contributions over the preceding 12 months.

Franchisees must adhere to the organizational and governing documents established by All Dogs Unleashed and must sign any necessary documents to confirm their agreement. The Advertising Cooperative begins operations on a date determined by All Dogs Unleashed. Furthermore, no advertising or promotional materials can be used by the Advertising Cooperative or its members without the prior approval of All Dogs Unleashed, ensuring that all advertising aligns with the brand's standards.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.