Under what circumstances might Hydrodog create a regional advertising cooperative?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, in our discretion, create a regional advertising cooperative ("Cooperative") in any area where two or more HydroDog Businesses are located, and establish the rules and regulations therefor.
Immediately upon our request, you must become a member of the Cooperative for the area in which your HydroDog Business is located.
In no event may the HydroDog Business be required to be a member of more than one Cooperative.
The Cooperative must be governed in the manner we prescribe.
You shall make contributions to the Cooperative in such amounts at the times and in the manner as determined by majority vote of the Cooperative members, subject to our approval.
Any amounts that you contribute to a Cooperative will count toward your Local Advertising requirement, but if the amount you contribute to a Cooperative is less than the amount you must spend on Local Advertising you must spend the difference locally.
The following provisions apply to each Cooperative:
(a) The Cooperative must be organized and governed in a form and manner, and commence operation on a date that we approve in advance in writing;
(b) the Cooperative must be organized for the exclusive purpose of administering marketing programs; developing, subject to our approval, standardized promotional materials for the members' use in Local Advertising within the Cooperative's area;
(c) the Cooperative may adopt its own rules and procedures, but such rules or procedures must be approved by us and must not restrict or expand your rights or obligations under this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog may, at its discretion, establish a regional advertising cooperative in any area where two or more HydroDog Businesses are located. If Hydrodog establishes a cooperative in the area where a franchisee's HydroDog Business is located, the franchisee must become a member of the Cooperative immediately upon Hydrodog's request. However, a HydroDog Business will not be required to be a member of more than one Cooperative.
The Cooperative will be governed in a manner prescribed by Hydrodog. Franchisees must contribute to the Cooperative in amounts, at times, and in a manner determined by a majority vote of the Cooperative members, but this is subject to Hydrodog's approval. Any amounts contributed to a Cooperative will count toward the franchisee's local advertising requirement. If the contribution to the Cooperative is less than the required local advertising spend, the franchisee must spend the difference locally.
The Cooperative must be organized and governed in a form and manner, and commence operation on a date that Hydrodog approves in advance in writing. It must be organized for the exclusive purpose of administering marketing programs and developing standardized promotional materials for the members' use in local advertising within the Cooperative's area, subject to Hydrodog's approval. The Cooperative may adopt its own rules and procedures, but such rules or procedures must be approved by Hydrodog and must not restrict or expand the franchisee's rights or obligations under the Franchise Agreement.