How are the geographical areas for Anago's Local Advertising Cooperatives determined?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to establish or direct or authorize the establishment of a local advertising cooperative ("Local Advertising Cooperative"). Each Local Advertising Cooperative will be comprised of geographical areas that we determine or approve in which 2 or more Businesses are operating and in which their local marketing efforts are likely to overlap. Each Business located in the area covered by the Local Advertising Cooperative (including those Businesses that we or our affiliates own or operate) will be required to contribute, on an equal basis, to the Local Advertising Cooperative. Each Local Advertising Cooperative, if established, will be organized and governed by written documents in a form and manner, and begin operating on a date, that we determine in advance. Such written documents will be available for participating franchisees to review. If a Local Advertising Cooperative is established for your geographic area, you must pay into it and participate in the marketing programs it conducts, in each case, as determined by the vote of the majority of its members, with each participating Business having 1 vote. We expect that each Local Advertising Cooperative will run autonomously, based on the majority vote of the participating members, but subject to our prior written approval of the proposed marketing programs and using only those marketing materials that have been provided or approved by us in advance.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the geographical areas for Local Advertising Cooperatives are determined or approved by Anago. These cooperatives will consist of areas where at least two Anago businesses operate and their local marketing efforts are likely to overlap. Each business within the cooperative's area, including those owned or operated by Anago or its affiliates, must contribute equally to the cooperative.
If Anago establishes a Local Advertising Cooperative for a franchisee's area, the franchisee is required to participate and contribute to its marketing programs as determined by a majority vote of the members, with each business having one vote. The cooperative will operate autonomously based on the majority vote of its members. However, all proposed marketing programs and materials must receive prior written approval from Anago.
Currently, there are no local advertising cooperatives in effect. However, Anago reserves the right to establish them in the future. The written documents governing the organization and operation of any Local Advertising Cooperative will be available for participating franchisees to review.