How are a Cordova franchisee's contributions to the Advertising Cooperative limited?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
uch Advertising Cooperative is established during the Term of this Agreement, Franchisee shall fully participate in the Advertising Cooperative and Franchisee shall execute, at the request of Franchisor, all documents required by Franchisor and Franchisee shall become a member of the Advertising Cooperative subject to the terms of those documents;
- (5) Franchisee shall contribute to the Advertising Cooperative in the amounts as determined and required by the Advertising Cooperative or, otherwise in accordance with those documents governing the operation of the Advertising Cooperative; provided, however, Franchisee's contributions to the Advertising Cooperative shall not exceed Franchisee's local minimum marketing obligations set forth in Article 9.B.
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, a franchisee's contributions to the Advertising Cooperative are limited to the franchisee's local minimum marketing obligations as defined in Article 9.B. of the Franchise Agreement. The franchisee's contributions to the Advertising Cooperative will count toward fulfilling these minimum local marketing obligations.
This means that Cordova franchisees are not required to contribute more to the Advertising Cooperative than they are already obligated to spend on local marketing. This arrangement ensures that franchisees are not overburdened with excessive advertising costs beyond their initial marketing commitments. It also allows franchisees to satisfy their local marketing requirements through their participation in the cooperative.
This structure is beneficial for franchisees as it provides a clear cap on their advertising contributions and integrates cooperative advertising with their local marketing efforts. However, franchisees should carefully review Article 9.B of the Franchise Agreement to fully understand their minimum local marketing obligations and how these obligations interact with the Advertising Cooperative contributions. Franchisees should also note that Cordova Businesses owned by the franchisor and/or its affiliates within the Advertising Cooperative's geographic area are not required to contribute to the Advertising Cooperative.