For what purpose shall the Cordova Advertising Cooperative be operated?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
he Advertising Cooperative including voting provisions that allows the Advertising Cooperative to make decisions based on the simple majority vote (one vote per franchisee Cordova Business located within the designated area of the Advertising Cooperative) with a quorum constituting 25% of those franchisees within the Advertising Cooperative;
- (3) 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 revi
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the Advertising Cooperative is established for the purpose of administering marketing programs and developing media for use by its members in local or regional marketing efforts. However, all marketing programs and media development are subject to review and approval by Cordova. The cooperative is funded through franchisee contributions. These contributions are determined by the Advertising Cooperative, but they cannot exceed the franchisee's local minimum marketing obligations as outlined in the franchise agreement. Franchisee contributions to the Advertising Cooperative count toward fulfilling these minimum local marketing obligations.
Franchisees are required to participate in and contribute to the Advertising Cooperative if their Cordova Business or Operating Territory falls within the cooperative's designated geographic area. The cooperative makes decisions based on a simple majority vote, with one vote per franchisee Cordova Business in the area, and a quorum of 25% of the franchisees is required. Franchisees must also submit statements and reports to both the Advertising Cooperative and Cordova as required.
Cordova retains significant control over the Advertising Cooperative, including the right to establish and de-authorize cooperatives, set foundational requirements, and approve all marketing materials. Cordova-owned businesses within the cooperative's area are not required to contribute to the cooperative. The Advertising Cooperative must also comply with rules and regulations established by Cordova in the Operations Manual, which may be modified from time to time.
For a prospective Cordova franchisee, this means that participation in the Advertising Cooperative is mandatory if one is established in their area. While franchisees have a voice in the cooperative's decisions, Cordova ultimately controls the marketing programs and media used. Franchisees need to factor in the potential costs of contributing to the Advertising Cooperative, although these contributions can offset their local marketing obligations. It is important to understand the specific rules and regulations governing the Advertising Cooperative as outlined in the Operations Manual, as these are subject to change by Cordova.