Is Monicals Pizza obligated to create a cooperative advertising program for restaurants in a particular region?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Although we are not obligated to do so and have not yet done so, we may create a cooperative advertising program for the benefit of all Monical's restaurants located within a particular region.
If we do, we have the right to collect and designate all or a portion of the local advertising for a cooperative advertising program.
We will determine the geographic territory and market areas for each cooperative advertising program.
You must participate in any cooperative advertising program established in your region.
If a cooperative advertising program is implemented in a particular region, we may establish an advertising council for franchisees in that region to self-administer the program.
If we establish a cooperative advertising program or programs with or without an advertising council, there are no limits on our right to change, dissolve or merge such program(s) and/or council(s) at any time. (Franchise Agreement, Section 11.4)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 20–27)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, Monicals Pizza is not obligated to create a cooperative advertising program for restaurants in a particular region. However, Monicals Pizza may choose to create one for the benefit of all Monicals Pizza restaurants located within a specific region.
If Monicals Pizza establishes a cooperative advertising program, they have the right to collect and designate all or a portion of the local advertising funds for the program. Monicals Pizza will determine the geographic territory and market areas for each cooperative advertising program. Franchisees are required to participate in any cooperative advertising program established in their region.
Monicals Pizza also has the right to establish an advertising council for franchisees in a particular region to self-administer the cooperative advertising program. However, Monicals Pizza retains the right to change, dissolve, or merge such programs and/or councils at any time, regardless of whether an advertising council is in place.