Can the advertising cooperative increase the contribution amount for Angry Chickz franchisees, and if so, what is the required vote?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Your minimum contributions to the advertising cooperative will be determined by us, but are not expected to exceed 1%. However, each cooperative may increase the contribution by affirmative vote of not less than a majority of the voting power of the cooperative region. We or our affiliate, as applicable, will contribute to the advertising cooperative for each of our company- or affiliate-owned Restaurants located in the cooperative region on the same basis as franchisees.
The advertising cooperative must prepare quarterly and annual financial statements prepared by an independent CPA and be made available to all franchisees in that advertising cooperative.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–33)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, while the franchisor determines the minimum advertising cooperative contributions, the cooperative itself can increase this amount. The initial minimum contribution determined by Angry Chickz is not expected to exceed 1%.
However, the advertising cooperative can increase the contribution amount with an affirmative vote. This increase requires a majority vote of the voting power within the cooperative region. Each franchisee gets one vote per restaurant they operate in the region, and Angry Chickz also gets one vote for each company-owned restaurant in the region.
This means that while Angry Chickz sets the initial contribution, franchisees have a mechanism to collectively decide if they want to invest more in advertising for their region, giving them some control over their advertising strategy. It is important to note that the advertising cooperative must prepare quarterly and annual financial statements prepared by an independent CPA and be made available to all franchisees in that advertising cooperative.