How are the payment amounts to a local or regional advertising cooperative determined for a Casiola Business?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Note 5: Local and Regional Advertising Cooperatives – If two or more Casiola Businesses are operating within a geographic area, region, or market designated by us (a "designated market"), we reserve the right to establish and require your participation in a local or regional advertising cooperative within the designated market. If an advertising cooperative is established within a designated market that includes your Casiola Business(s), you will be required to participate in the cooperative and make on-going payments to the cooperative in such amounts and subject to such caps as established by the cooperative members. We anticipate that each Casiola Business franchisee will have one vote for each Casiola Business located within the cooperative market and those cooperative decisions shall be made based on approval of a simple majority vote with a quorum of not less than 25% of the designated cooperative members. Contributions to a local or regional cooperative that we designate will count toward satisfaction of your minimum local marketing requirements and shall not exceed the local marketing requirement.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, if two or more Casiola businesses operate in a designated market, Casiola reserves the right to establish a local or regional advertising cooperative. If such a cooperative is established, franchisees are required to participate and make ongoing payments.
The payment amounts and any caps are determined by the cooperative members themselves. Each Casiola franchisee gets one vote per business they own within the cooperative market. Decisions are made by a simple majority vote, provided at least 25% of the designated cooperative members are present (a quorum).
Contributions to these local or regional cooperatives, if designated by Casiola, count toward fulfilling the franchisee's minimum local marketing requirements. These contributions will not exceed the local marketing requirement. This means that franchisees may not have to spend additional funds on local marketing beyond what they contribute to the cooperative, as long as the cooperative contributions meet or exceed the minimum local marketing spend.