In what form and manner will each Beggars Pizza advertising Cooperative be organized and governed?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.10.1 Each Cooperative will be organized and governed in a form and manner, will commence operation on a date approved by Franchisor, and will operate pursuant to written governing documents, all of which must be approved in advance by Franchisor in writing.
- 12.10.2 Each Cooperative will be organized for the exclusive purpose of administering regional advertising programs and developing, subject to Franchisor's approval, standardized advertising materials for use by the members in local advertising.
- 12.10.3 No promotional or advertising plans or materials may be used by a Cooperative or furnished to its members without the prior approval of Franchisor. All such plans and materials must be submitted to Franchisor in accordance with the procedure set forth in Section 12.7.
- 12.10.4 Each Cooperative may require its members to make contributions to the Cooperative in such amounts as determined by the Cooperative; provided, however, that Franchisee will not be required to contribute to any Cooperative in excess of two percent (2%) of Gross Sales during any calendar year, unless two-thirds of the members of the Cooperative vote in favor of a greater contribution. Franchisee's payments made under this Section 12.10.4 will be credited towards the expenditure required to be made under Section 12.2.
- 12.10.5 Each member franchisee will submit to the Cooperative the amount invoiced by the Cooperative or Franchisor, as described in Section 4.5, its contribution as provided in Section 12.10.4, together with such other statements or reports as may be required by Franchisor or by the Cooperative with Franchisor's prior approval.
- 12.10.6 Franchisor, in its sole discretion, may grant to any franchisee an exemption for any length of time from the requirement of membership in a Cooperative, upon written request of such franchisee stating the reasons supporting such exemption. Franchisor's decision concerning such request for exemption will be final. If an exemption is granted to a franchisee, such franchisee will be required to expend on local promotion and advertising in the full amount provided for in Section 12.2. Franchisor may require Cooperatives to be changed, dissolved, or merged in Franchisor's discretion.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, each advertising cooperative will be organized and governed in a manner approved by Beggars Pizza. The cooperative will begin operations on a date approved by Beggars Pizza and operate under written governing documents, which also require Beggars Pizza's written approval.
The purpose of each Beggars Pizza advertising cooperative is to administer regional advertising programs and develop standardized advertising materials for members' local advertising use, subject to Beggars Pizza's approval. Promotional or advertising plans or materials cannot be used by the cooperative or furnished to members without Beggars Pizza's prior approval. These plans and materials must be submitted to Beggars Pizza according to a specified procedure.
Each Beggars Pizza cooperative can require members to contribute, but a franchisee's contribution cannot exceed 2% of gross sales in a calendar year unless two-thirds of the cooperative members vote for a higher contribution. Payments made by the franchisee to the cooperative will be credited towards the franchisee's required local advertising expenditure. Franchisees must submit the invoiced amount, their contribution, and any other required statements or reports to the cooperative, with Beggars Pizza's prior approval. Beggars Pizza retains the discretion to grant franchisees exemptions from cooperative membership, requiring them to spend the full amount on local promotion and advertising instead. Beggars Pizza also has the power to change, dissolve, or merge cooperatives at its discretion.