Are Crisp & Green franchisees' contributions to local advertising cooperatives credited toward their required local advertising expenditures?

According to Crisp & Green's 2024 Franchise Disclosure Document, contributions to local and regional advertising cooperatives are generally credited toward a franchisee's required local advertising expenditures. However, there is an exception for certain special regional promotions that Crisp & Green may designate from time to time, for which contributions may not be credited. As of the date of the FDD, Crisp & Green has not established any local or regional advertising cooperatives.

Crisp & Green retains the right to establish local or regional advertising cooperatives for restaurants, covering geographical areas they designate. If a cooperative is established for a franchisee's location, participation is mandatory, including adherence to the cooperative's bylaws. Franchisees must contribute amounts determined by the cooperative. Any restaurants owned by Crisp & Green or its affiliates in the designated area will contribute to the cooperative on the same basis.

Franchisees are normally required to spend 4.5% of the prior quarter's gross sales on local marketing. However, this requirement is not enforced if the franchisee has an approved marketing representative on their team and is compliant with the Local Marketing Core Four program and all agreements with Crisp & Green and its affiliates. Franchisees must provide proof of local marketing expenditures within 30 days of request. If a franchisee does not spend the minimum amount on local marketing in a given year, they must pay Crisp & Green the difference between the minimum obligation and the amount actually spent.