Under what circumstances must I combine advertising with other Monicals Pizza franchises?
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 12 — TERRITORY (FDD pages 27–28)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, franchisees may be required to participate in cooperative advertising programs. Monicals Pizza has the right, but not the obligation, to create these programs for restaurants in a particular region.
Monicals Pizza determines the geographic territories and market areas for each cooperative advertising program and can require a franchisee to participate in any program established for their region. If a cooperative advertising program is implemented, Monicals Pizza has the right to administer it or establish an advertising council of franchisees to do so. Franchisees must participate in the council according to its rules and procedures and abide by its decisions.
Monicals Pizza also has the right to collect all or a portion of the local advertising funds for the funding of a Cooperative Advertising program. Monicals Pizza retains the right to change, dissolve, or merge such programs and/or councils at any time, with or without an advertising council.