Does Crisp & Green require franchisees to participate in local or regional advertising cooperatives if they are established?
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 required to participate in local and regional advertising cooperatives if Crisp & Green establishes them for the franchisee's restaurant. Participation includes adhering to the cooperative's by-laws and contributing financially as determined by the cooperative.
However, franchisees have the option to opt out of price advertising within these cooperatives. Any Crisp & Green-owned or affiliate-owned restaurants within the designated area will also contribute to the cooperative on the same basis as franchisees. These contributions are credited toward the franchisee's required local advertising expenditures as outlined in the Franchise Agreement, although Crisp & Green may designate certain special regional promotions that are excluded from this credit.
As of the date of the 2024 disclosure document, Crisp & Green has not yet established any local or regional advertising cooperatives. This means that currently, franchisees are not subject to mandatory cooperative advertising fees, but this could change in the future if Crisp & Green decides to implement such cooperatives.