What rights does Monicals Pizza retain regarding cooperative advertising programs and councils?
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 the 2025 Monicals Pizza Franchise Disclosure Document, Monicals Pizza has significant rights regarding cooperative advertising programs and councils. Monicals Pizza has the right to collect and designate all or a portion of local advertising funds for a cooperative advertising program if one is created. Monicals Pizza also determines 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.
Furthermore, Monicals Pizza retains the right to establish an advertising council for franchisees in a particular region to self-administer the cooperative advertising program. However, even with an advertising council, Monicals Pizza maintains full control.
Most importantly, Monicals Pizza has the explicit right to change, dissolve, or merge any cooperative advertising program and/or council at any time, without limitations. This gives Monicals Pizza complete authority over these advertising initiatives, which could impact how franchisees market their locations and allocate their advertising budgets. Prospective franchisees should consider this level of control when evaluating the Monicals Pizza franchise opportunity.