Who establishes the timing of contributions for the Regional Advertising Cooperative Fee for
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Brand Cooperative Advertising Fund Fee(3)(4) | 3% of Gross Sales | Payable on the Payment Date based on weekly Gross Sales for the prior week | You will pay us via electronic funds transfer, where we will electronically debit your designated bank account. |
| Local Advertising | Up to 1% of weekly | Weekly | |
| Expenditures(3)(5) | Gross Sales | ||
| Regional Advertising Cooperative Fee(3)(6) | Maximum – 2% of Gross Sales | If appliable, each cooperative will establish the timing of contributions |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the timing of contributions for the Regional Advertising Cooperative Fee is established by each individual cooperative, if applicable. The Regional Advertising Cooperative Fee has a maximum of 2% of gross sales.
This means that if a franchisee is required to participate in a regional advertising cooperative, the specific due dates and payment schedules will be determined by that cooperative itself, not directly by Lees Famous Recipe corporate. This allows for flexibility at the regional level, potentially tailoring advertising efforts and payment schedules to better suit the needs and circumstances of franchisees within that specific region.
Prospective franchisees should inquire about whether a regional advertising cooperative exists in their area, and if so, obtain details about its specific requirements and contribution schedule. Understanding the structure and operation of any regional advertising cooperatives is essential for budgeting and financial planning as a Lees Famous Recipe franchisee.