If a Cooperative Advertising program is implemented in a region, is a Monicals Pizza franchisee required to participate?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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, if a Cooperative Advertising program is implemented in a particular region, franchisees are required to participate. Monicals Pizza has the right to create such a program for restaurants located within a specific region. The purpose of this program is to benefit all Monicals Pizza restaurants within that region.
Monicals Pizza has the authority to collect Local Advertising funds to contribute to the Cooperative Advertising program. They also determine the geographic territories and market areas for each program. Franchisees are obligated to participate in any Cooperative Advertising program established for their region.
The program may be administered by Monicals Pizza or by an advertising council of franchisees. If a council is established, franchisees must participate according to the council's rules and procedures and abide by its decisions. Monicals Pizza retains the right to change, dissolve, or merge these programs or councils at any time, with or without an advertising council.