Does the Devon Creek system currently have a regional advertising fund or cooperative?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 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 Devon Creek franchise outlets in a designated geographic area. Our affiliate-owned outlets may participate in a regional cooperative, in our sole discretion. Each Devon Creek franchise outlet will have one vote in the cooperative. We will determine in advance how each cooperative will be organized and governed. 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 terms 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 are not to 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 24–32)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the franchise system does not currently have a regional advertising fund or cooperative. However, Devon Creek retains the right to establish one in the future, and franchisee participation could be mandatory at their discretion.
If a regional cooperative is established, it will include all franchised Devon Creek outlets within a designated geographic area, and affiliate-owned outlets may participate at Devon Creek's discretion. Each franchise outlet will have one vote in the cooperative, and Devon Creek will determine the organization and governance of each cooperative. Devon Creek also reserves the right to form, dissolve, merge, or change the structure of these cooperatives.
If a cooperative is established during the term of the Franchise Agreement, franchisees must sign all required documents and become members according to the terms provided. Currently, there are no governing documents available for review. If Devon Creek does establish a regional advertising fund or cooperative, franchisees will be required to contribute amounts that Devon Creek requires, in addition to the Brand Fund contributions. However, these contributions may be credited against up to one-half of the 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.