What is the process for a Beard Papas franchisee to contribute to the Advertising Cooperative?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) If Franchisor previously instituted or, in the future, institutes an Advertising Cooperative that includes, in whole or in part, Franchisee's Designated Territory or Franchisee's Shop Location, Franchisee shall participate in and make such on-going financial contributions to the Advertising Cooperative, as determined by the Advertising Cooperative;
- (2) Franchisor may establish foundational and organizational requirements of the Advertising Cooperative including voting provisions that allows the Advertising Cooperative to make decisions based on the simple majority vote (one vote per franchisee Shop located within the designated area of the Advertising Cooperative) with a quorum constituting 25% of those franchisees within the Advertising Cooperative;
- (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;
- (4) If at the time of execution of this Agreement an Advertising Cooperative has been established for a geographic area that includes, in whole or in part, Franchisee's Shop location or Designated Territory, or if such Advertising Cooperative is established during the Term of this Agreement, Franchisee shall fully participate in the Advertising Cooperative and Franchisee shall execute, at the request of Franchisor, all documents required by Franchisor and Franchisee shall become a member of the Advertising Cooperative subject to the terms of those documents;
- (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
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, if Beard Papas institutes an Advertising Cooperative that includes a franchisee's territory or shop location, the franchisee is required to participate and make ongoing financial contributions as determined by the cooperative. Beard Papas may establish the foundational and organizational requirements of the Advertising Cooperative, including voting provisions that allow the cooperative to make decisions based on a simple majority vote, with one vote per franchisee shop. A quorum requires 25% of the franchisees within the Advertising Cooperative.
Each Advertising Cooperative is organized to administer marketing programs and develop media for use by its members in local or regional marketing, subject to Beard Papas's review and approval. If an Advertising Cooperative already exists when the Franchise Agreement is executed or is established during the term of the agreement, the franchisee must fully participate and execute all required documents to become a member.
The franchisee's contributions to the Advertising Cooperative will be in the amounts determined and required by the cooperative, but these contributions cannot exceed the franchisee's local minimum marketing obligations as outlined in Article 9.B of the Franchise Agreement. Furthermore, these contributions count toward satisfying the franchisee's minimum local marketing obligations. This ensures that franchisees are actively involved in local marketing efforts while also adhering to the broader marketing strategies set by Beard Papas.