What is the maximum amount a Beard Papas franchisee can contribute to the Advertising Cooperative?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Franchisee shall contribute to the Advertising Cooperative in the amounts as determined and required by the Advertising Cooperative or, otherwise in accordance with those documents governing the operation of the Advertising Cooperative; provided, however, Franchisee's contributions to the Advertising Cooperative shall not exceed Franchisee's local minimum marketing obligations set forth in Article 9.B. of this Agreement and Franchisee's contributions to the Advertising Cooperative shall count toward satisfaction of Franchisee's minimum local marketing obligations set forth in Article 9.B.;
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, if a Beard Papas franchisee is part of an Advertising Cooperative, their contributions to that cooperative cannot exceed their local minimum marketing obligations as outlined in Article 9.B of the franchise agreement. The amount the franchisee contributes to the Advertising Cooperative counts towards fulfilling their minimum local marketing obligations.
This means that while the Advertising Cooperative determines the specific contribution amounts, there is a cap tied to the franchisee's pre-existing local marketing responsibilities. This arrangement ensures that franchisees aren't burdened with excessive advertising costs beyond what they would already be spending on local marketing efforts.
Prospective franchisees should carefully review Article 9.B of the Beard Papas franchise agreement to understand their minimum local marketing obligations. They should also inquire about any existing or planned Advertising Cooperatives in their designated territory to fully understand the potential costs and benefits associated with cooperative advertising.