If a cooperative advertising program is established for City Publications, would each franchisee automatically be a member?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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- There is no advertising program for which you are required to make contributions. There is no advertising council composed of franchisees. We may elect at a future time to arrange cooperative advertising. You may elect with other franchisees to establish cooperative advertising for a select area encompassing your mutual territories. It is optional for the franchisees to participate in such a cooperative. If such a cooperative is established, we anticipate that each franchisee in the given area would automatically be a member, with one vote per franchise agreement. Any company or affiliate owned outlets would also be members and would be required to make the same contributions as the other members. Since there are no cooperatives at this point or ever in the past, we do not have a policy on an amount that franchisees would be required to contribute to the cooperative. We anticipate that the members would establish a governing board and would adopt governing documents that would be available for review by a prospective franchisee. (Section 11B)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–24)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, currently, there is no mandatory advertising program or advertising council for franchisees. However, City Publications may choose to establish cooperative advertising in the future. Franchisees can also elect to establish cooperative advertising for a specific area encompassing their territories. Participation in such a cooperative is optional for franchisees.
If a cooperative advertising program is established, City Publications anticipates that each franchisee within the designated area would automatically become a member. Each franchise agreement would have one vote. Any company-owned or affiliate-owned outlets would also be members and would be required to contribute the same amount as other members.
Since no cooperative advertising programs exist currently, there is no established policy regarding the amount franchisees would be required to contribute. City Publications anticipates that the members of the cooperative would establish a governing board and adopt governing documents, which would be available for review by prospective franchisees. This provides a framework for how advertising cooperatives may function if implemented, but the details are subject to change as these programs are developed.