What is a 'Cooperative' in the context of Cicis' marketing?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ontribution or to ensure that any you or any other franchisee benefits directly or pro rata from the Fund's activities.
- (5) Although the Fund is intended to be of perpetual duration, we may terminate the Fund. The Fund will not be terminated, however, until all monies in the Fund have been expended for marketing or promotional purposes or returned to all contributors, without interest, on the basis of their respective contributions.
- D. Cooperatives. We have the right, in our sole discretion, to designate any geographic area in which two or more Cicis Restaurants are located as a region for purposes of establishing a marketing cooperative ("Cooperative") to conduct marketing for the Cicis Restaurants located within the designated Cooperative area. You will be required to participate in any such Cooperative, in accordance with the rules established for the Cooperative, for the area in which your Restaurant is located. All contributions to the Cooperative will be maintained and administered in accordance with the Cooperative's governing documents, and the
Cooperative will be operated solely as a conduit for the collection and authorized expenditure of Cooperative contributions. Each Cooperative will be organized and governed in a form and manner, and will commence operation on a date, we determine in our sole discretion.
- E. Grand Opening. In addition to any other amounts you are required to contribute or spend under this Agreement, you will carry out and fund a grand opening promotion relating to the opening of your Restaurant as we specify in the Manuals or otherwise in writing. Amounts paid by you for the initial grand opening promotion will not be credited toward any other of your obligations under this Agreement.
- F. Business Listings.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, a marketing cooperative, or "Cooperative," is a regional marketing entity that Cicis may establish at its discretion when two or more Cicis restaurants are located in the same geographic area. The purpose of the Cooperative is to conduct marketing activities for the benefit of the Cicis restaurants within that designated area. Franchisees are required to participate in any Cooperative established for their restaurant's location and must adhere to the Cooperative's rules.
The funds contributed to the Cooperative are managed according to the Cooperative's governing documents and are intended to be used solely for authorized Cooperative expenditures. The structure, governance, and operational start date of each Cooperative are determined by Cicis. Franchisees are required to contribute to the Cooperative based on its governing documents, with these contributions potentially counting towards their Local Marketing Spend, unless the Cooperative uses the funds in a way that doesn't satisfy the Local Marketing Spend requirements.
In addition to the required contributions, the Cooperative may also authorize additional amounts with a vote of its members, subject to Cicis' approval. These additional amounts, termed "Excess Cooperative Contribution," cannot be used to offset the Local Marketing Spend requirement. Cicis retains the right to aggregate or re-allocate a franchisee's Fund Contributions, Local Marketing Spend, and Minimum Cooperative Contributions to different marketing vehicles as it sees fit. This gives Cicis significant control over the marketing efforts and fund allocation within the system.