Is the City Wide franchisee's contribution to a cooperative advertising program in addition to other advertising expenses?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Such payments will be in addition to and exclusive of any other sums Franchisee is required to spend on advertising.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee's contribution to a cooperative advertising program is in addition to any other advertising expenses they are required to spend. City Wide may designate a local or regional advertising area where a franchisee's business and at least one other City Wide franchise are located.
Franchisees will contribute to a cooperative advertising program if 50% or more of the City Wide franchisees in the designated market area (DMA), as defined by Nielsen Media Research, agree to it. The cost of the program is allocated among the franchisees in proportion to their gross sales during the preceding 12-month period.
This means that franchisees should budget for both the cooperative advertising contributions and any other advertising they are required to undertake, as these are separate financial obligations. Franchisees should be aware of this additional cost when evaluating the overall investment and ongoing expenses associated with a City Wide franchise.