For Capriottis Sandwich Shop, what costs can contributions to the Cooperative be used to meet?

According to Capriottis Sandwich Shop's 2025 Franchise Disclosure Document, contributions to the Cooperative are exclusively used for maintaining, directing, and preparing advertising and promotional activities within the specific region. These activities include television, radio, magazine, digital, and social advertising campaigns, as well as direct-mail and outdoor billboard advertising. Funds may also be allocated to marketing surveys, public relations activities, employing advertising agencies, and providing promotional brochures and other marketing materials to the restaurants.

In addition to direct advertising and promotional costs, the Cooperative contributions can also be used to cover reasonable administrative costs and overhead related to the administration or direction of the Cooperative or its advertising programs. The Cooperative functions solely as a conduit for collecting and spending advertising contributions for the purposes outlined in the Franchise Agreement.

Capriottis Sandwich Shop requires that all advertising and promotional plans or materials used by the Cooperative must undergo prior review and approval by the franchisor. Franchisees must pay their share of the advertising and promotional expenses incurred by the Cooperative, with contributions typically due when the Royalty Fee is collected. The standard contribution is 2% of Gross Sales per month, but a majority of the Cooperative's members can vote to increase this rate. Franchisees may request an exemption from Cooperative membership, but the franchisor's decision is final and can be reversed at any time.