What is required of a Casiola franchisee if an Advertising Cooperative already exists at the time of the franchise agreement?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
th 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;
- (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
in Article 9.B. of this Agreement and Franchisee's contributions to the Advertising Cooperative shall count toward satisfaction of Franchisee's minimum local marketing obligations set forth in Article 9.B.;
- (6) Franchisee shall submit to the Advertising Cooperative and to Franchisor such statements and reports as may be required by the Advertising Cooperative and approved by Franchisor. All contributions to the Advertising Cooperative shall be maintained and administered in accordance with the documents governing the Advertising Cooperative. The Advertising Cooperative shall be operated solely for the purpose of collection and expenditure of the Advertising Cooperative's fees for the purpose set forth in this Article 9.C.;
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 when a franchisee signs their agreement, or if one is established during the term of the agreement, the franchisee must fully participate in it. This includes executing all documents required by Casiola and becoming a member, adhering to the cooperative's terms.
The franchisee is also obligated to contribute financially to the Advertising Cooperative. The amount is determined by the cooperative itself. However, the franchisee's contribution will not exceed their minimum local marketing obligations as outlined in Article 9.B of the Franchise Agreement, and these contributions will count towards fulfilling those minimum local marketing requirements.
In addition, the franchisee must submit statements and reports as required by the Advertising Cooperative and approved by Casiola. It's important to note that Casiola Businesses owned by Casiola or its affiliates within the cooperative's area are not required to contribute to the Advertising Cooperative. All marketing materials and plans must receive prior written approval from Casiola.