Are contributions to a Co-op Advertising Region included in the required Local Advertising Expenditure for an Angry Chickz franchise?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Monthly, you must shall expend no less than 1% of its Gross Sales for the preceding month, for local advertising of your Restaurant ("Local Advertising Expenditure"). At our request, but no more frequently than annually, you must prepare a deliver to us for our review and acceptance a local marketing plan for the 12-month period designated by us in our request. Such local marketing plan shall be prepared in accordance with the Standards and Manual(s). You must deliver evidence of local advertising expenditures in the form and manner prescribed by us. All contributions to a Co-op Advertising Region and all expenditures for other promotional campaigns shall be in addition to your required Local Advertising Expenditure.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–23)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, contributions to a Co-op Advertising Region are separate from the required Local Advertising Expenditure. Franchisees must spend a minimum of 1% of the previous month's Gross Sales on local advertising. This is referred to as the "Local Advertising Expenditure".
The FDD specifies that all contributions to a Co-op Advertising Region, as well as expenditures for other promotional campaigns, are in addition to this mandatory Local Advertising Expenditure. This means that franchisees cannot count their co-op advertising contributions toward meeting their 1% local advertising obligation.
This requirement could increase the overall advertising costs for an Angry Chickz franchisee, as they must budget separately for both the local advertising expenditure and any co-op advertising contributions. Franchisees should factor these advertising costs into their financial projections and business planning.