Does Angry Chickz have the right to withhold approval for the Co-op Advertising Region's use of funds?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.7.3 Each Co-op Advertising Region will decide the use of funds available to it for advertising or marketing. The Co-op Advertising Region shall then in writing request approval from Company. Company shall not withhold its approval unreasonably, but no placement of advertising or commitment of funds on behalf of a Co-op Advertising Region will be made without Company's prior written approval. Company reserves the right to establish standards concerning the operation of the Co-op Advertising Region, advertising agencies retained by Co-op Advertising Region, and advertising programs conducted by Co-op Advertising Region. Any disputes (other than pricing) arising among or between Franchisee, other franchisees, and/or the Co-op Advertising Region may be resolved by Company whose decision shall be final and binding on all parties. No Co-op Advertising Region may appoint or pay from the funds collected by the Co-op Advertising Region fees or costs of any advertising agency or buying group without the prior written consent of Company.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the company has the right to approve or deny the Co-op Advertising Region's use of funds. While each Co-op Advertising Region decides how to use its available funds for advertising or marketing, they must request written approval from Angry Chickz.
Angry Chickz agrees to not unreasonably withhold approval. However, no advertising placement or commitment of funds can occur without the company's prior written approval. Angry Chickz also retains the right to set standards for the Co-op Advertising Region's operations, the advertising agencies they use, and the advertising programs they conduct.
Additionally, Angry Chickz must provide prior written consent before a Co-op Advertising Region can appoint or pay any advertising agency or buying group using the funds collected by the Co-op Advertising Region. Any disputes, excluding pricing disagreements, among franchisees or between franchisees and the Co-op Advertising Region can be resolved by Angry Chickz, whose decision will be final and binding.