What happens if an Advertising Cooperative has already been established for a geographic area that includes a Casiola franchisee's business location at the time of the agreement?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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 Casiola Business location or Operating Market, 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
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, if an Advertising Cooperative is already in place for an area that includes a new franchisee's Casiola Business location or Operating Market when the franchise agreement is signed, the franchisee is required to fully participate in the Advertising Cooperative.
The franchisee must also execute all documents required by Casiola and become a member of the Advertising Cooperative, adhering to the cooperative's terms. The franchisee is obligated to contribute to the Advertising Cooperative in the amounts determined and required by the cooperative itself.
However, the franchisee's contributions to the Advertising Cooperative will not exceed the franchisee's local minimum marketing obligations as outlined in Article 9.B of the agreement. Furthermore, these contributions to the Advertising Cooperative will count toward fulfilling the franchisee's minimum local marketing obligations, also set forth in Article 9.B.