For Capriottis Sandwich Shop, what is the exclusive purpose for which each Cooperative must be organized?

According to the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, each Cooperative must be organized exclusively for maintaining, directing, and preparing advertising and promotional activities within its region. This includes covering costs related to various advertising campaigns such as television, radio, magazine, digital, and social media, as well as direct-mail and outdoor billboard advertising. Cooperatives also handle marketing surveys, public relations, employing advertising agencies, and providing promotional materials to Capriottis Sandwich Shop Restaurants.

The funds collected by the Cooperative must be used solely for these advertising and promotional activities, although they can also be used to cover Capriottis Sandwich Shop's reasonable administrative costs and overhead related to managing the Cooperative or its advertising programs. The Cooperative acts as a conduit for collecting and spending advertising contributions as outlined in the Franchise Agreement.

Franchisees are required to pay their share of the advertising and promotional expenses incurred by the Cooperative and must submit any reports requested by Capriottis Sandwich Shop or the Cooperative. Failure to make timely payments can result in suspension or exclusion from advertising initiatives funded by the Cooperative until all outstanding amounts are paid. This contribution is typically 2% of Gross Sales per month, but a majority of the Cooperative's members can vote to increase this rate. Capriottis Sandwich Shop retains the power to form, change, dissolve, or merge Cooperatives, ensuring alignment with its overall marketing strategy.