What is the exclusive purpose for which each Bang Cookies Advertising Cooperative should be organized?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
- (3) Unless otherwise authorized and approved by Franchisor in writing, each Advertising Cooperative shall be organized for the exclusive purpose of administering marketing programs and the development of media (all subject to the review and approval of Franchisor) for use by members of the Advertising Cooperative in local or regional marketing;
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, each Advertising Cooperative must be organized exclusively to administer marketing programs and develop media for use by its members in local or regional marketing efforts. However, all marketing programs and media development are subject to review and approval by Bang Cookies.
This means that if a Bang Cookies franchisee is located within a designated Advertising Cooperative area, they are required to participate in the cooperative and contribute financially. These contributions count towards the franchisee's minimum local marketing obligations as outlined in the franchise agreement. However, the franchisee's contributions to the Advertising Cooperative cannot exceed these minimum local marketing obligations.
The Advertising Cooperative is responsible for collecting and spending fees for the specific purpose of advertising, as defined in the franchise agreement. Bang Cookies retains control over the marketing materials, plans, and media used by the cooperative, ensuring brand consistency. It is important to note that Bang Cookies-owned shops or those owned by its affiliates within the cooperative's area are not required to contribute to the Advertising Cooperative.
The Advertising Cooperative must also adhere to the rules and regulations established by Bang Cookies in its operations manual, which Bang Cookies may modify from time to time. Franchisees are required to submit statements and reports to both the Advertising Cooperative and Bang Cookies, as requested. This structure ensures that while franchisees contribute to local marketing efforts, Bang Cookies maintains oversight and control over brand messaging and marketing strategies.