Does Monicals Pizza have an obligation to create a Cooperative Advertising program?
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, Monicals Pizza 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. Monicals Pizza has the right to collect and designate all or a portion of the Local Advertising to payments or contributions to Monicals Pizza for the funding of a Cooperative Advertising program.
Monicals Pizza also 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 a franchisee participate in any Cooperative Advertising program established with respect to the franchisee's region. If a Cooperative Advertising program is implemented in a particular region, Monicals Pizza has the right to administer the Cooperative Advertising program or to establish an advertising council of franchisees to administer the Cooperative Advertising program.
The franchisee must participate in the council according to the rules and procedures established by the council and the franchisee must abide by the council's decisions. Monicals Pizza has the right, but not the obligation, to change, dissolve or merge such program(s) and/or council(s) at any time, whether or not Monicals Pizza establishes a Cooperative Advertising program or programs with or without an advertising council.