If a Casiola Business is located within an Advertising Cooperative's geographic area, what is the franchisee required to do?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
ent, possesses the right to authorize, establish, designate and de-authorize a local or regional advertising cooperative within those markets that Franchisor designates (the "Advertising Cooperative"). Franchisee agrees that Franchisor possesses the sole and exclusive right to designate any geographic area in which two or more Casiola Business franchises are located as a region for the purpose of establishing an Advertising Cooperative. If Franchisee's Casiola Business or Operating Market is located within the geographic area of an Advertising Cooperative, franchisee must participate in and contribute to the Advertising Cooperative. Franchisee agrees to the following:
- (1) If Franchisor previously instituted or, in the future, institutes an Advertising Cooperative that includes, in whole or in part, Franchisee's Operating Market or Franchisee's Casiola Business 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 Casiola Business 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;
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, if a franchisee's Casiola Business or Operating Market is located within the geographic area of an Advertising Cooperative, the franchisee must participate in and contribute to the Advertising Cooperative.
Casiola retains the sole and exclusive right to designate any geographic area in which two or more Casiola Business franchises are located as a region for the purpose of establishing an Advertising Cooperative. The franchisee is required to contribute to the Advertising Cooperative in the amounts determined and required by the Advertising Cooperative. However, the franchisee's contributions to the Advertising Cooperative cannot exceed the franchisee's local minimum marketing obligations as outlined in Article 9.B of the agreement, and these contributions will count toward satisfying those minimum local marketing obligations.
The franchisee must also submit statements and reports as required by the Advertising Cooperative and approved by Casiola. All contributions to the Advertising Cooperative will be maintained and administered according to the documents governing the Advertising Cooperative, which is operated solely for collecting and spending fees for the purposes outlined in Article 9.C. No marketing materials, plans, or media can be used by the Advertising Cooperative or its members without Casiola's prior written approval. It's worth noting that Casiola Businesses owned by Casiola or its affiliates within the Advertising Cooperative's geographic area are not required to contribute to the cooperative.