Who comprises a regional cooperative for Corporate Cleaning Group?
Corporate_Cleaning_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Currently, our System has no regional advertising fund or cooperative. However, we may decide to establish a regional fund or cooperative in the future and your participation may be mandatory, in our sole discretion. A regional cooperative will be comprised of all franchised Corporate Cleaning Group outlets in a designated geographic area. Our affiliate and franchisor owned outlets are not required to contribute to a regional cooperative. Each Corporate Cleaning Group outlet will have one vote in the cooperative. We will determine in advance how each cooperative will be organized and governed. Membership will be defined on a geographic basis. We have the right to form, dissolve, merge or change the structure of the cooperatives. If a cooperative is established during the term of your Franchise Agreement, you must sign all documents we request and become a member of the cooperative according to the term of the documents. Currently, there are no governing documents available for your review.
If we establish a regional advertising fund or cooperative, you must contribute amounts we require. Your contributions to a regional advertising fund or cooperative will be in addition to your required contributions to the Brand Fund; however, contributions made by you to a regional advertising fund or cooperative will be credited against up to one-half of your required expenditures for local advertising. Fees for the cooperative will not exceed one-half of the Local Advertising requirement or your pro-rata share of actual cooperative advertising costs, whichever is greater.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–34)
What This Means (2025 FDD)
According to Corporate Cleaning Group's 2025 Franchise Disclosure Document, a regional cooperative, if established, will consist of all franchised Corporate Cleaning Group outlets within a specific geographic area. Notably, Corporate Cleaning Group's affiliate and franchisor-owned outlets are not required to participate in or contribute to the regional cooperative. Each franchised Corporate Cleaning Group outlet will have one vote in the cooperative's decisions.
Corporate Cleaning Group retains the authority to determine the organization and governance of each cooperative in advance. Membership in a cooperative is defined geographically, and Corporate Cleaning Group reserves the right to form, dissolve, merge, or alter the structure of these cooperatives. If a cooperative is established during the term of a franchisee's agreement, the franchisee is obligated to sign all required documents and become a member according to the cooperative's terms.
Currently, there are no regional advertising funds or cooperatives in place. However, Corporate Cleaning Group may decide to establish one in the future, and participation could be mandatory at their discretion. If such a fund or cooperative is created, franchisees must contribute the amounts Corporate Cleaning Group requires, in addition to contributions to the Brand Fund. However, contributions to the regional fund or cooperative can be credited against up to half of the franchisee's required local advertising expenditures. Fees for the cooperative will not exceed one-half of the Local Advertising requirement or the franchisee's pro-rata share of actual cooperative advertising costs, whichever is greater.