When is the cooperative advertising fee due for a Chop5 Salad Kitchen franchise?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.4. Advertising Cooperative. We may, but need not, establish regional advertising cooperatives for purposes of creating and/or purchasing advertising programs for the benefit of all Restaurants located in a particular region. We may: (a) determine the boundaries of the cooperative; (b) specify the manner in which the cooperative is organized and governed; (c) require the cooperative to be administered in accordance with written bylaws, organizational documents or other governing documents that we approve; and (d) require you to participate in the cooperative according to its rules and procedures and abide by its decisions. You must pay the cooperative advertising fee, which will be due on each royalty payment due date or on such other date established by the cooperative. We may set the minimum cooperative advertising fee or we may allow the cooperative to set the cooperative advertising fee based on majority vote of its members. In either case, the cooperative advertising fee will not exceed the amount of your Local Advertising Commitment. We may either: (a) collect cooperative advertising fees and remit them to the applicable cooperative; or (b) require you to pay these fees directly to the cooperative. All cooperative advertising fees you pay are credited towards your Local Advertising Commitment. We reserve the right to form, change, merge or dissolve advertising cooperatives in our discretion.
Source: Item 23 — RECEIPT (FDD pages 50–178)
What This Means (2024 FDD)
According to the 2024 Chop5 Salad Kitchen Franchise Disclosure Document, the cooperative advertising fee is due on each royalty payment due date or on such other date established by the cooperative. The FDD states that Chop5 Salad Kitchen may establish regional advertising cooperatives for the purpose of creating and/or purchasing advertising programs for the benefit of all restaurants located in a particular region.
Chop5 Salad Kitchen has the authority to determine the boundaries of the cooperative, specify the manner in which the cooperative is organized and governed, require the cooperative to be administered in accordance with written bylaws, organizational documents or other governing documents that they approve, and require franchisees to participate in the cooperative according to its rules and procedures and abide by its decisions.
The cooperative advertising fee will not exceed the amount of the franchisee's Local Advertising Commitment. Chop5 Salad Kitchen may either collect cooperative advertising fees and remit them to the applicable cooperative, or require franchisees to pay these fees directly to the cooperative. All cooperative advertising fees paid are credited towards the Local Advertising Commitment. Chop5 Salad Kitchen reserves the right to form, change, merge or dissolve advertising cooperatives in its discretion.