If City Publications owns outlets, are they required to make the same contributions as other members in a cooperative?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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, if cooperative advertising is established, any company or affiliate-owned outlets would be members and would be required to make the same contributions as the other members. Currently, there are no advertising programs for which franchisees are required to make contributions, and there is no advertising council composed of franchisees.
City Publications may choose to arrange cooperative advertising in the future, and franchisees may also elect to establish cooperative advertising for a select area encompassing their mutual territories. Participation in such a cooperative is optional for franchisees. If a cooperative is established, it is anticipated that each franchisee in the given area would automatically be a member, with one vote per franchise agreement.
Since there are no cooperatives at this time, City Publications does not have a policy on the amount that franchisees would be required to contribute to the cooperative. It is anticipated that the members would establish a governing board and would adopt governing documents that would be available for review by a prospective franchisee.