If Anago establishes a local advertising cooperative, will franchisees be required to become members?

Currently there are no local advertising cooperatives. However, we reserve the right to establish a local advertising cooperative. If we choose to establish one, you may be required to become a member and contribute to the fund.

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)