What is a Local Advertising Cooperative (LAC) for Central Bark Doggy Day Care franchisees?
Central_Bark_Doggy_Day_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that, subject to the terms of this Section, Franchisor, its affiliates, or designees may establish or direct the establishment of a local advertising cooperative ("LAC") in any geographic area (as determined by Franchisor) where two or more Central Bark Facilities are operating. Each LAC will be organized and governed by written documents in a form and manner determined by Franchisor, and will begin operations on a date set by Franchisor. These governing documents will be made available to participating members. Franchisor may modify, dissolve, or merge LACs at its discretion.
The purpose of each LAC is to administer local advertising programs and develop marketing and promotional materials for the area it covers, subject to Franchisor's approval. If a LAC exists in Franchisee's geographic area at the time this Agreement is signed—or is established during the term of this Agreement—Franchisee agrees to join the LAC, sign any required participation documents, and comply with its terms.
If a LAC is established in Franchisee's area, Franchisee must participate and contribute its share of the LAC's budget. These contributions will count toward Franchisee's required Local Expenditures under Section VI.B and are payable monthly along with the Royalty Fee. Contribution amounts may be capped as provided in the LAC's bylaws, subject to Franchisor's approval. Franchisee will remit payments electronically to Franchisor, who will forward them to the LAC. Franchisor-owned Central Bark Facilities will contribute to the LAC on the same basis as franchisees.
Each Central Bark Facility contributing to a LAC will have one vote on matters concerning the LAC's activities. All advertising, marketing, and promotional materials used by the LAC must be approved in advance by Franchisor. Franchisor may assist in developing marketing plans, which will be implemented under the LAC's direction. Subject to Franchisor's approval and available funds, the LAC will have discretion over the creative concepts, materials, and endorsements it uses. LAC funds may be used to cover the costs of producing and distributing advertising materials (including video, audio, and print), purchasing media placements, implementing direct sales programs, and hiring marketing or public relations firms to support local campaigns. All funds collected for the LAC will be accounted for separately from Franchisor's general funds and will not be used to cover Franchisor's operating expenses.
Franchisee agrees to submit any reports required by Franchisor or the LAC. Franchisee acknowledges that it may not benefit directly or proportionally from its contributions to the LAC and that each LAC is intended to serve only the facilities within its designated area.
Franchisor may, but is not obligated to, use collection agents or initiate legal proceedings to collect unpaid LAC contributions on behalf of the LAC. Franchisor may also settle, waive, or compromise claims involving the LAC. Except as expressly stated in this Section, Franchisor assumes no liability or obligation for the operation or administration of any LAC.
Source: Item 23 — Receipts (FDD pages 53–106)
What This Means (2025 FDD)
According to Central Bark Doggy Day Care's 2025 Franchise Disclosure Document, a Local Advertising Cooperative (LAC) is a group established by Central Bark Doggy Day Care, its affiliates, or designees in geographic areas where at least two Central Bark facilities operate. The purpose of the LAC is to manage local advertising programs and create marketing materials for the area, all subject to Central Bark Doggy Day Care's approval. The LAC's operations are governed by written documents determined by Central Bark Doggy Day Care, which may modify, dissolve, or merge LACs at its discretion.
If a LAC exists in a franchisee's area, they must join, sign required documents, and comply with the terms. Franchisees are required to contribute to the LAC's budget, and these contributions count toward their local advertising expenditure requirements. These contributions are paid monthly along with the royalty fee and remitted electronically to Central Bark Doggy Day Care, who then forwards them to the LAC. Each Central Bark Doggy Day Care facility contributing to a LAC has one vote on matters concerning the LAC's activities.
All advertising, marketing, and promotional materials used by the LAC must be approved by Central Bark Doggy Day Care. The funds collected by the LAC are accounted for separately from Central Bark Doggy Day Care's general funds and are used to cover costs such as producing and distributing advertising materials, purchasing media placements, implementing direct sales programs, and hiring marketing or public relations firms. Franchisees must submit any reports required by Central Bark Doggy Day Care or the LAC and acknowledge that they may not directly or proportionally benefit from their contributions. Central Bark Doggy Day Care may use collection agents or legal proceedings to collect unpaid LAC contributions and may settle, waive, or compromise claims involving the LAC, but assumes no liability for the operation or administration of any LAC except as expressly stated.
Prospective franchisees should be aware that participation in a LAC is mandatory if one is established in their area, and they will be required to contribute financially. While the LAC aims to benefit all facilities within its area, there is no guarantee that each franchisee will see a direct or proportional return on their investment. Franchisees should inquire about the existence of any current LACs in their target area and carefully review the LAC's governing documents to understand their obligations and the potential benefits.