If a cooperative is established, would each City Publications franchisee automatically be a member?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the establishment of advertising cooperatives is possible, but not mandatory. City Publications franchisees may choose to form a cooperative advertising program with other franchisees in their area. If such a cooperative is created, the FDD anticipates that each franchisee within the defined area would automatically become a member. Each franchise agreement grants one vote within the cooperative.
The FDD specifies that any company-owned or affiliated outlets would also be members of the cooperative. These company-owned entities would be required to contribute to the cooperative under the same terms as the franchisees.
Since City Publications has not established cooperatives in the past, the FDD does not provide a specific policy regarding the amount franchisees would be required to contribute. The FDD anticipates that the cooperative members would create a governing board and adopt governing documents. These documents would be available for review by prospective franchisees, allowing them to understand the cooperative's structure and financial obligations before joining.