What happens if an Azal Coffee franchisee participates in joint advertising?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
If you participate in joint advertising, you will pay your proportionate share of each advertisement.
If an advertising cooperative has been or is formed for your market, the cooperative may require advertising fees be paid to the cooperative, but only if authorized by a majority vote of the members of the cooperative.
As of the date of this Franchise Disclosure Document, no advertising cooperatives have been formed.
The amounts spent by you for local advertising, joint advertising, cooperative advertising, and any promotional programs specified by us will apply to your minimum local advertising obligations.
Except for pre-opening/grand opening advertising and any contributions to the marketing fund that we may require, you will not be required to spend more than the amounts specified in the table for local advertising, joint advertising, cooperative advertising, and promotional programs specified by us.
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, if a franchisee participates in joint advertising, they are required to pay their proportionate share of each advertisement. The amounts spent by the franchisee for local advertising, joint advertising, cooperative advertising, and any promotional programs specified by Azal Coffee will apply to the minimum local advertising obligations.
Azal Coffee franchisees are obligated to spend a minimum of 1% of monthly Gross Sales on local advertising. Joint advertising is one way this obligation can be fulfilled. The FDD specifies that except for pre-opening/grand opening advertising and any contributions to the marketing fund that Azal Coffee may require, franchisees will not be required to spend more than the amounts specified for local advertising, joint advertising, cooperative advertising, and promotional programs specified by Azal Coffee.
An advertising cooperative may be formed for the franchisee's market, which may require advertising fees to be paid to the cooperative, but only if authorized by a majority vote of the members of the cooperative. As of the date of the Franchise Disclosure Document, no advertising cooperatives have been formed. This means that currently, joint advertising and direct local advertising are the primary ways for a franchisee to meet their minimum advertising obligations.