If Monicals Pizza establishes an advertising council for a Cooperative Advertising program, what is the franchisee's obligation regarding the council's decisions?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Monicals Pizza has the right to administer the program or establish an advertising council of franchisees to administer it. If an advertising council is established, the franchisee must participate in the council according to its established rules and procedures. Most importantly, the franchisee is obligated to abide by the council's decisions.
This means that franchisees may have a say in the advertising strategies and decisions within their region through participation in the advertising council. However, they are ultimately bound by the decisions made by the council, even if they disagree with them. This structure aims to ensure a unified and consistent advertising approach within the cooperative's defined marketing area.
It's important to note that Monicals Pizza retains the right to change, dissolve, or merge any Cooperative Advertising program or council at any time. This provides Monicals Pizza with flexibility in managing advertising strategies and responding to changing market conditions. Prospective franchisees should inquire about the typical structure and decision-making processes of these advertising councils to understand the extent of their influence and obligations.