Under what conditions can an Advertising Cooperative (Ad Co-Op) be established for Churchs Chicken restaurants?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Advertising Cooperative (Ad Co-Op) can be established under two conditions. First, Churchs Chicken has the right to form, change, dissolve, or merge Ad Co-Ops at its discretion. This means Churchs Chicken can unilaterally decide to create or modify these cooperatives.
Second, an Ad Co-Op may be established if the owners of 80% of the Churchs Chicken restaurants (both franchised and company-owned) within the same Designated Market Area (DMA) vote to do so and obtain Churchs Chicken's approval. This indicates that a significant majority of restaurant owners in a specific geographic area can collectively decide to form an Ad Co-Op, but this is contingent on receiving approval from Churchs Chicken.
Churchs Chicken also retains the right to require or approve the marketing agencies that the Ad Co-Op uses, set standards for these agencies, and withdraw approval from agencies that do not meet those standards. This ensures that all advertising efforts align with Churchs Chicken's overall marketing strategy and quality standards.