How does Chicken Guy determine the geographic area covered by a Regional Advertising Fund or Co-op?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the Brand Fund (when established), you will pay that portion of the Weekly Marketing Obligation as we direct to any Regional Advertising Fund or, in lieu of a Regional Advertising Fund, a Regional Co-op that we may establish in the geographic area that covers your Franchised Location. We will determine the geographic area covered by a Regional Advertising Fund or a Regional Co-op based on the location of the Chicken Guy! Restaurants in the area and the reach of print, radio and television media in the area. Company-operated and franchised Chicken Guy! Restaurants in the geographic area covered by a Regional Advertising Fund or a Regional Co-op will be obligated to contribute to that Fund or Co-op. As of the date of this disclosure document, we have not yet established any Regional Advertising Fund or Co-op.
As noted above, in lieu of a Regional Advertising Fund for the area that includes your Franchised Location, we may establish a Regional Co-op. Monies in the Regional Co-op may be spent for the purposes determined by majority vote of the Regional Co-op on the basis of one vote for each Chicken Guy! Restaurant in the Regional Co-op. If the members of a Regional Co-op are unable or fail to determine how to spend Regional Co-op monies, we may assume this decision-making authority following ten days' advance written notice to the Regional Co-op members.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–34)
What This Means (2025 FDD)
According to the 2025 Chicken Guy FDD, the geographic area covered by a Regional Advertising Fund or Co-op is determined by the location of Chicken Guy restaurants in the area and the reach of print, radio, and television media in that area. Both company-operated and franchised Chicken Guy restaurants within the defined geographic area will be required to contribute to the Regional Advertising Fund or Co-op. As of the date of the Franchise Disclosure Document, Chicken Guy has not yet established any Regional Advertising Fund or Co-op.
If a Regional Co-op is established instead of a Regional Advertising Fund, the funds may be used for purposes determined by a majority vote of the Regional Co-op members, with each Chicken Guy restaurant in the co-op having one vote. However, if the members cannot decide how to spend the funds, Chicken Guy may assume decision-making authority after providing ten days' advance written notice to the Regional Co-op members.
Chicken Guy, or its designee, has sole discretion over the creative concepts, materials, endorsements, and the geographic, market, and media placement and allocation of advertising and marketing materials financed by the Brand Fund and any Regional Advertising Fund. Advertising funded by the Brand Fund, Regional Advertising Funds, or Regional Co-ops must conform to Chicken Guy's specifications. Chicken Guy also has the right to terminate or restart any of the advertising and cooperative funds and establish different advertising or cooperative funds. They may incorporate any advertising fund and have a separate entity manage it. Chicken Guy will not use any of the advertising funds to solicit franchise sales.