What is the process for an Azal Coffee franchisee to participate in an advertising cooperative?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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 an advertising cooperative is formed in a franchisee's market, the cooperative may require advertising fees. However, this is 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 for Azal Coffee franchisees.
Franchisees are required to spend 1% of monthly Gross Sales on local advertising. 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.
If a franchisee fails to adequately document their local advertising expenses, Azal Coffee may require the franchisee to pay the minimum local advertising amounts directly to them. In this case, Azal Coffee has the discretion to use these funds for local advertising and promotion for the franchisee, including digital advertising, social media, flyers, promotions, mailers, or as part of joint or cooperative advertising.