Under what conditions can Casiola establish a local or regional advertising cooperative?
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, Casiola reserves the right to establish local or regional advertising cooperatives if two or more Casiola businesses are operating within a geographic area, region, or market designated by them. This designated area is referred to as a "designated market."
If Casiola establishes such a cooperative in a designated market that includes a franchisee's Casiola business, the franchisee is required to participate and make ongoing payments to the cooperative. The amounts and any caps on these payments will be determined by the cooperative members themselves. Each Casiola Business franchisee within the cooperative market will have one vote for each business they operate in that market. Cooperative decisions are made by a simple majority vote, provided that at least 25% of the designated cooperative members are present to form a quorum.
Contributions made to a local or regional cooperative that Casiola designates will count toward satisfying the franchisee's minimum local marketing requirements. These contributions will not exceed the local marketing requirement, meaning that participation in the cooperative serves to fulfill, rather than add to, the franchisee's marketing obligations. This structure ensures that franchisees collaborate on advertising efforts while also meeting their individual marketing responsibilities.