If a local advertising cooperative is established for my area, am I required to participate in the marketing programs it conducts for Anago?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago reserves the right to establish a local advertising cooperative. If a local advertising cooperative is established for a franchisee's geographic area, the franchisee must pay into it and participate in the marketing programs it conducts. These programs are determined by a majority vote of the members, with each participating business having one vote.
The Local Advertising Cooperative will be comprised of geographical areas that Anago determines or approves, where at least two Anago businesses operate and their local marketing efforts are likely to overlap. All businesses in the area, including those owned or operated by Anago or its affiliates, must contribute equally to the cooperative. The cooperative will be organized and governed by written documents, with the form, manner, and start date determined by Anago in advance. These documents will be available for franchisees to review.
While Anago expects each Local Advertising Cooperative to run autonomously based on the majority vote of its members, all proposed marketing programs must receive Anago's prior written approval. Additionally, only marketing materials provided or approved by Anago can be used. This ensures that all local advertising efforts align with Anago's overall brand standards and marketing strategies.
Currently, there are no local advertising cooperatives in place. However, Anago retains the right to establish them in the future. If such a cooperative is established in a franchisee's area, participation and financial contribution are mandatory, subject to the terms and conditions set forth by Anago and the cooperative's governing documents.