What is a 'Local Marketing Cooperative' in the context of a Crisp & Green franchise?
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 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 51–52)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, a local or regional advertising cooperative is an entity that Crisp & Green has the right to establish for Restaurants, covering geographical areas that they designate. If Crisp & Green establishes a cooperative that includes a franchisee's Restaurant, the franchisee must participate in the advertising cooperative and its programs, with the exception of price advertising, which is optional. Franchisees must contribute to the advertising cooperative as determined by its by-laws. Any Restaurants owned by Crisp & Green or its affiliates in the designated area will contribute to the cooperative on the same basis.
Contributions to these local and regional advertising cooperatives can be credited toward the franchisee's required local advertising expenditures under the Franchise Agreement, except for certain special regional promotions that Crisp & Green may designate. As of the date of the 2024 disclosure document, Crisp & Green had not yet established any local or regional advertising cooperatives.
This means that while franchisees may be required to participate in and contribute to local advertising cooperatives if they are established, Crisp & Green retains the right to create these cooperatives and determine their structure and requirements. Franchisees should inquire about the potential establishment of these cooperatives and their associated costs and obligations.