Under what circumstances might Angry Chickz exempt itself or franchisees from participating in a Co-op Advertising Region?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Company may, but is not obligated to, establish regions for co-operative advertising ("Co-op Advertising Regions"), to coordinate advertising, marketing efforts and programs and maximize the use of local and/or regional advertising media.
- 8.7.1 If Company creates a Co-op Advertising Region for the region in which the Franchised Business is located, Franchisee shall become a subscriber and member of the Co-op Advertising Region.
Franchisee will execute and participate in accordance with the organizational and formation documents prescribed by Company for the Co-op Advertising Region.
The size and membership of such regions shall be binding upon Franchisee, and all other similarly situated franchisees of the System and Company or such Affiliate of Company, if it operates Restaurant(s) in the region; provided, however, that Company reserves the right to exempt itself, its Affiliates and/or certain franchisees from participation, including in connection with Restaurants at Non-Traditional Venues in the region.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz may establish Co-op Advertising Regions to coordinate advertising and marketing efforts. If a Co-op Advertising Region is created for the area where a franchisee's business is located, the franchisee is required to become a member and participate.
However, Angry Chickz retains the right to exempt itself, its affiliates, and/or certain franchisees from participating in these Co-op Advertising Regions. This exemption can include restaurants located at Non-Traditional Venues within the region. This means that not all Angry Chickz locations are automatically required to participate in the co-op advertising, giving the franchisor flexibility.
This clause provides Angry Chickz with the discretion to tailor advertising participation based on specific circumstances, such as location type. For a prospective franchisee, this means that participation in a Co-op Advertising Region is not guaranteed and may depend on the location of their franchise. It would be prudent for a potential franchisee to clarify with Angry Chickz whether their specific location would be expected to participate in a Co-op Advertising Region and what the financial obligations would entail.