How will Angry Chickz notify me if I am required to join a regional advertising cooperative?

As of the date of this disclosure document, we have not established any local or regional advertising cooperatives ("Co-op"). When established, you must participate in any advertising Co-op for the region in which your Restaurant is located. We will notify you in writing if you must join a regional advertising cooperative for your area and the amount of your advertising cooperative contributions. We determine the area of each advertising cooperative.

Each advertising cooperative must adopt written governing documents. A copy of the governing documents (if one has been established) is available upon request. At all meetings of cooperative advertising regions, each participating franchisee is entitled to one vote per Restaurant that franchisee operates in the cooperative region and we are entitled to one vote for each company-owned Restaurant in the region.

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)