Does City Publications have a policy on the amount franchisees would be required to contribute to 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's 2025 Franchise Disclosure Document, there is currently no mandatory advertising program or advertising council for franchisees. However, City Publications may choose to arrange cooperative advertising in the future, and franchisees can also elect to establish their own cooperative advertising within their mutual territories. Participation in such cooperatives would be optional for franchisees. If a cooperative is established, City Publications anticipates that each franchisee in the area would automatically become a member, with one vote per franchise agreement. Any company-owned or affiliated outlets would also be members and would be required to contribute the same amount as other members.
Since no cooperatives exist at the time of the FDD, City Publications does not have a specific policy on the amount franchisees would be required to contribute. The FDD states that the members of any future cooperative would establish a governing board and adopt governing documents, which would be available for review by prospective franchisees.
This means that if a cooperative advertising program is established, the contribution amount would be determined by the franchisees themselves through their governing board. Prospective franchisees should inquire about the process for establishing and managing cooperative advertising programs, as well as the potential costs and benefits of participating, to better understand the financial implications.