Can a Crisp & Green franchisee choose not to participate in price advertising within a local advertising cooperative?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
We have the right to establish local and/or regional advertising cooperatives for Restaurants, covering such geographical areas as we may designate at any time and from time to time. With respect to any advertising cooperative we establish and which we designate for your Franchised Restaurant, you must participate in such advertising cooperative and its programs (other than price advertising, as to which you may choose not to participate) and abide by its by-laws. You must contribute such amounts to the advertising cooperative(s) as they determine at any time and from time to time in accordance with their by-laws. Any Restaurants owned by us or any of our affiliates located in such designated local or regional area(s) will contribute to the cooperative(s) on the same basis. Contributions to such local and regional advertising cooperatives are credited toward your required local advertising expenditures under the Franchise Agreement, with the exception of certain special regional promotions we may designate from time to time. As of the date of this disclosure document, we have not established any local or regional advertising cooperatives.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 33–44)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, franchisees are generally required to participate in local advertising cooperatives if they are established by the franchisor. However, a franchisee can choose not to participate in price advertising within such cooperatives.
This means that while Crisp & Green franchisees must contribute to and engage with the advertising cooperative's programs, they have the option to abstain from any advertising activities that involve specific pricing. This provides franchisees with some flexibility in how they market their individual locations, allowing them to tailor their approach to local market conditions and customer preferences without being forced to adhere to a uniform pricing strategy.
As of the date of the 2024 Franchise Disclosure Document, Crisp & Green had not yet established any local or regional advertising cooperatives. If such cooperatives are established in the future, franchisees should carefully review the cooperative's by-laws and understand their rights and obligations regarding participation, especially concerning price advertising.