How are the costs of a cooperative advertising program allocated among City Wide franchisees?

According to City Wide's 2025 Franchise Disclosure Document, the cost of a cooperative advertising program is allocated among City Wide franchisees based on their Gross Sales during the preceding twelve-month period. City Wide may designate a local or regional advertising coverage area that includes a franchisee's business and at least one other City Wide franchise. This is done to develop a cooperative local or regional advertising or promotional program. Franchisees contribute their share to the program if it is agreed upon by at least 50% of the City Wide franchises within the designated dominant market area (DMA), as defined by Nielsen Media Research.

The franchisee's share of the cooperative advertising program's cost is proportional to their Gross Sales during the previous 12 months, or the portion of that period if they haven't been operating for a full year. These payments are in addition to any other advertising expenses the franchisee is required to spend. This means newer franchisees will pay less into the cooperative advertising program until they have accumulated a full year's worth of gross sales data.

This system ensures that franchisees contribute to the advertising program based on their business volume, creating a fair distribution of costs. However, franchisees should be aware that these cooperative advertising costs are separate from, and in addition to, the $1,200 they must spend annually on their own local advertising and promotion, as well as the marketing fee paid to the Marketing Fund. Franchisees should also be aware that City Wide retains control over the concepts, materials, staffing, and media used in marketing and national business development.