What is an Ad Co-Op in the context of a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
e sales on our www.churchs.com website.
Advertising Cooperatives:
We have the right to form, change, dissolve or merge Ad Co-Ops. An Ad Co-Op may also be established if the owners of 80% of the Restaurants (franchised and owned by us) within the same DMA vote to do so and obtain our approval.
In conducting regional advertising, it is normal and customary to engage the services of a marketing agency to plan and place media, as well as perform other tasks. We reserve the right to require or approve the marketing agencies the Ad Co-Op uses. We also reserve the right to set standards that marketing agencies must meet and to withdraw our approval of an agency that does not meet those standards.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, an Ad Co-Op, or Advertising Cooperative, is a regional advertising group that Churchs Chicken has the right to form, change, dissolve, or merge. Alternatively, if 80% of the Churchs Chicken restaurants within the same Designated Market Area (DMA) vote to establish one and receive approval from Churchs Chicken, an Ad Co-Op can also be formed. These cooperatives are designed to conduct regional advertising efforts.
Churchs Chicken maintains some control over these Ad Co-Ops, reserving the right to require or approve the marketing agencies that the Ad Co-Op uses. They can also set standards for these agencies and withdraw approval if the standards are not met. This ensures that the regional advertising aligns with the overall brand standards and marketing strategies of Churchs Chicken.
Franchisees are required to participate in the Ad Fund, contributing 5% of their restaurant's weekly gross sales. Participation in an Ad Co-Op does not change this requirement; franchisees must still contribute the same percentage to the Ad Fund, even if an Ad Co-Op is created and they are required to participate in it. This mandatory contribution ensures that there are sufficient funds for both national and regional advertising initiatives, as Churchs Chicken may use the Ad Fund for national, regional, and/or local media coverage.