What is 'Cooperative Advertising' in the context of Monicals Pizza franchises?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
"Cooperative Advertising" means the combined advertising program of two (2) or more franchisees established within a marketing area that Franchisor may define for Monical's Restaurants within a particular region;
Franchisor has the right, but not the obligation, to create a Cooperative Advertising program for the benefit of Monical's Restaurants located within a particular region. Franchisor has the right to collect and designate all or a portion of the Local Advertising to payments or contributions to Franchisor for the funding of a Cooperative Advertising program. Franchisor has the right to determine the composition of all geographic territories and market areas for the implementation of each Cooperative Advertising program and to require that Franchisee participate in any Cooperative Advertising program established with respect to Franchisee's region. If a Cooperative Advertising program is implemented in a particular region, Franchisor has the right to administer the Cooperative Advertising program or to establish an advertising council of franchisees to administer the Cooperative Advertising program. Franchisee shall participate in the council according to the rules and procedures established by the council and Franchisee shall abide by the council's decisions. Should Franchisor establish a Cooperative Advertising program or programs with or without an advertising council, Franchisor has the right, but not the obligation, to change, dissolve or merge such program(s) and/or council(s) at any time.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, Cooperative Advertising is defined as a combined advertising program involving two or more franchisees within a specific marketing area that the company may define for Monicals Restaurants in a particular region.
Monicals Pizza has the right, but not the obligation, to create such a program for the benefit of restaurants within a region. The company can collect Local Advertising funds to support these cooperative programs. Monicals Pizza also has the authority to determine the geographic territories and market areas for each program and can require franchisees to participate in any cooperative advertising program established for their region.
If a Cooperative Advertising program is implemented, Monicals Pizza can administer it directly or establish an advertising council of franchisees to manage the program. Franchisees are required to participate in the council according to its rules and must abide by its decisions. Monicals Pizza retains the right to change, dissolve, or merge these programs and councils at any time, with or without an advertising council.
For a prospective franchisee, this means that Monicals Pizza can mandate participation in regional advertising efforts and collect funds for that purpose. The franchisee may have some say in the advertising through a franchisee council, but ultimately, Monicals Pizza has the authority to make changes to or dissolve the program. Franchisees need to be aware that they may be required to contribute to and participate in these cooperative advertising programs.