What is the definition of 'Cooperative Marketing Programs' as it relates to Dog Haus franchises?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.3 Cooperative Marketing Programs.
Franchisor may from time to time establish programs for co-operative marketing ("Cooperative Marketing Programs") to coordinate marketing efforts and programs, to serve as a conduit for the collection and expenditure of the contributed funds and to maximize the efficient use of local and/or regional advertising media.
If and when Franchisor creates a Cooperative Marketing Program for the a marketing coverage area (an "Marketing Coverage Area") in which the Franchised Restaurant is located,
Franchisee (and, if Franchisor or an Affiliate of Franchisor owns a Franchised Restaurant in the Marketing Coverage Area, then Franchisor or such Affiliate of Franchisor), shall become a subscriber and member of the Cooperative Marketing Program and shall participate in the Cooperative Marketing Program in the manner prescribed by Franchisor. The size and content of a Marketing Coverage Area, when and if established by Franchisor, shall be binding upon Franchisee, and all other similarly situated Dog Haus franchisees and Franchisor or an Affiliate of Franchisor, if it operates Dog Haus Restaurants in the Marketing Coverage Area. Each participating Dog Haus Franchisee, as well as Franchisor (or its Affiliate), if applicable, shall be entitled to one vote for each Franchised Restaurant located within the Marketing Coverage Area as may reasonably be determined by Franchisor, but in no event shall any Dog Haus Franchisee and/or its Affiliates have more than twenty-five percent (25%) of the vote, regardless of the number of Dog Haus Restaurants owned.
- 10.3.1 Franchisee and all other members of the Marketing Coverage Area whose Franchise Agreements require their participation in the Cooperative Marketing Program, shall contribute to the Cooperative Marketing Program the amounts that are determined by Franchisor and fifty percent (50%) or more of the participating Dog Haus Restaurants in the Cooperative Marketing Program (at least one-half percent (.5%) of Gross Sales but not to exceed two percent (2%) of the Gross Sales of each participating Franchised Restaurant located in the Marketing Coverage Area).
Franchisee's contribution to the Cooperative Marketing Program shall be credited towards the satisfaction of the Local Store Marketing Expenditure required by Section 10.2.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Cooperative Marketing Programs are programs that Dog Haus may establish to coordinate marketing efforts, serve as a collection point for funds, and maximize the efficient use of local or regional advertising.
If Dog Haus creates a Cooperative Marketing Program for a specific marketing coverage area where a franchised restaurant is located, the franchisee must participate in the program as prescribed by Dog Haus. The size and content of the marketing coverage area are determined by Dog Haus and are binding on the franchisee and other similarly situated Dog Haus franchisees, including Dog Haus itself if it operates restaurants in the area. Each participating franchisee, including Dog Haus if applicable, gets one vote per restaurant in the marketing coverage area, but no franchisee can have more than 25% of the vote, regardless of how many restaurants they own.
Franchisees and other members of the marketing coverage area are required to contribute to the Cooperative Marketing Program. The amount is determined by Dog Haus and at least 50% of the participating Dog Haus restaurants in the program. The contribution must be at least 0.5% of gross sales but cannot exceed 2% of the gross sales of each participating franchised restaurant. The franchisee's contribution to the Cooperative Marketing Program can be credited toward their local store marketing expenditure requirements.