Under what condition will Auntie Annes not require a franchisee to participate in an Advertising Cooperative?

According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees are typically required to participate in advertising cooperatives if Auntie Annes specifies. These cooperatives may be local, regional, or national and are designed to enhance public recognition of the Auntie Annes system. The specific cooperative a franchisee may be required to join will depend on factors such as the Designated Market Area or Area of Dominant Influence where their franchise is located.

However, Auntie Annes outlines a specific condition under which a franchisee will not be required to participate in an Advertising Cooperative. If Auntie Annes collects the entire Local Marketing Obligation from the franchisee, then the franchisee will not be required to participate in any Advertising Cooperative.

This provision offers a potential benefit to franchisees by providing an alternative to direct participation in advertising cooperatives, streamlining their marketing obligations through a single payment to Auntie Annes. However, franchisees should ensure they fully understand the implications of this arrangement, including how the Local Marketing Obligation is determined and how it compares to the costs and benefits of participating in an Advertising Cooperative.