Does Lees Famous Recipe have the power to change or dissolve any regional cooperative advertising programs?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
In the future, we may require you to participate in, support and contribute to the cost of regional cooperative advertising programs that we designate. We reserve the right to designate regional and local advertising markets, to establish regional advertising councils and to establish the bylaws and other rules under which such councils will operate. Your contributions to regional and local advertising cooperatives (the "Regional Advertising Cooperative Contributions") will be credited toward your local marketing expenditures, as we periodically prescribe. We have the power to create, merge, change, and dissolve any regional cooperative advertising programs at any time upon notice to you. If any company-owned Restaurants are located within the Regional Advertising Cooperative territory, then those company-owned Restaurants will (i) contribute to the Regional Advertising Cooperative and (ii) retain voting power in the Regional Advertising
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 34–47)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, Lees Famous Recipe retains the authority to modify or terminate regional cooperative advertising programs. The FDD states that Lees Famous Recipe reserves the right to create, merge, change, and dissolve any regional cooperative advertising programs at any time upon notice to franchisees.
This provision grants Lees Famous Recipe significant control over regional advertising strategies and the allocation of advertising funds. While franchisees may be required to contribute to these regional programs, Lees Famous Recipe ultimately decides their fate. This power allows Lees Famous Recipe to adapt advertising efforts based on market conditions or strategic shifts, but it also means franchisees may experience changes in their regional advertising support.
For a prospective franchisee, this highlights the importance of understanding Lees Famous Recipe's advertising strategy and its potential impact on their local market. Franchisees should inquire about the criteria Lees Famous Recipe uses to make decisions about regional advertising programs and how these decisions might affect their individual restaurant's marketing efforts. It is also important to understand how much notice Lees Famous Recipe will provide before making changes to any regional cooperative advertising programs.