What is a regional advertising association called in the Floyds 99 FDD?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor reserves the right, upon 30 days prior written notice to the Franchisee, to create a regional advertising association ("Co-op") for the benefit of FLOYD'S 99 franchisees located within a particular geographic area.
If a Co-op is established for the area where the Franchisee is located, the Franchisee will be required to participate in the Co-op for the purpose of selecting and participating in regional marketing and promotion programs for FLOYD'S 99 Shops.
The Franchisee will be required to remain a member of and be bound by the decisions of the majority of the members of
the Co-op regarding expenditures, assessments and dues of the Co-op, to the extent that they are approved by the Franchisor. Franchisor may require Franchisee to allocate up to 2% of Gross Sales under Section 13.3 (Franchisee's maximum Local Advertising Allocation) as a required advertising contribution to the Co-op. Each Co-op has the right, by majority vote, to require its members to pay additional monthly dues to the Co-op. The failure of the Franchisee to participate in the Co-op or pay any dues required by the Coop, may, at the option of the Franchisor, be deemed to be a breach of this Agreement. The Franchisor has the right, in its sole discretion, to determine the composition of all geographic territories and market areas for the implementation of such regional advertising and promotion campaigns and to require that the Franchisee participate in such regional advertising programs as and when they may be established by the Franchisor. If a regional advertising program is implemented on behalf of a particular region by the Franchisor, the Franchisor, to the extent reasonably calculable, will only use contributions from FLOYD'S 99 franchisees within such region for the particular regional advertising program. The Franchisor reserves the right to seek reimbursement from the Co-op for reasonable administrative costs, salaries and overhead as the Franchisor may incur in activities related to the implementation and administration of the Co-op and marketing programs. The Franchisor also reserves the right to establish an advertising cooperative for a particular region to enable the cooperative to self-administer the regional advertising program; provided that the Franchisor shall have the right to review and approve the governing documents of such a selfadministering cooperative.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a regional advertising association is referred to as a "Co-op". Floyds 99 reserves the right to create these Co-ops with 30 days prior written notice to franchisees in a specific geographic area.
If a Co-op is established in the franchisee's area, participation is mandatory. The purpose of the Co-op is to select and participate in regional marketing and promotion programs for Floyds 99 shops. Franchisees are bound by the decisions of the majority of Co-op members regarding expenditures, assessments, and dues, provided these are approved by Floyds 99.
Floyds 99 can require franchisees to allocate up to 2% of their Gross Sales (the maximum Local Advertising Allocation) as a contribution to the Co-op. Additionally, each Co-op can require members to pay monthly dues, subject to franchisor approval. Failure to participate in the Co-op or pay dues can be considered a breach of the franchise agreement at Floyds 99's discretion. Floyds 99 also has the right to determine the territories and market areas for these regional campaigns and can require participation in regional advertising programs. Floyds 99 may seek reimbursement from the Co-op for administrative costs related to the Co-op's implementation and marketing programs. Floyds 99 also reserves the right to establish an advertising cooperative for a particular region to enable the cooperative to self-administer the regional advertising program; provided that Floyds 99 shall have the right to review and approve the governing documents of such a self-administering cooperative.