What is the exclusive purpose for which a Cordova Advertising Cooperative must be organized?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise authorized and approved by Franchisor in writing, each Advertising Cooperative shall be organized for the exclusive purpose of administering marketing programs and the development of media (all subject to the review and approval of Franchisor) for use by members of the Advertising Cooperative in local or regional marketing;
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, an Advertising Cooperative must be organized exclusively to administer marketing programs and develop media for use by its members in local or regional marketing efforts. However, all marketing programs and media development are subject to Cordova's review and approval.
If a franchisee's Cordova business or operating territory falls within the geographic area of an Advertising Cooperative, they are required to participate in and contribute to it. The franchisor has the sole right to designate any geographic area with two or more Cordova Business franchises as a region for establishing an Advertising Cooperative.
Franchisees must contribute to the Advertising Cooperative as determined by the cooperative, but these contributions will not exceed the franchisee's local minimum marketing obligations as outlined in Article 9.B of the franchise agreement. Furthermore, these contributions count toward fulfilling the franchisee's minimum local marketing obligations. This ensures that franchisees are actively involved in local marketing initiatives while adhering to the franchisor's standards and guidelines.