Do contributions to a local or regional cooperative designated by Mrcool count toward the minimum local marketing requirements?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 9: Local and Regional Advertising Cooperatives – If two or more Centers are operating within a geographic area, region, or market designated by us (a "Designated Market"), we reserve the right to establish and require your participation in a local or regional advertising cooperative within the Designated Market. If a local or regional advertising cooperative is established within a Designated Market that includes your Center(s), you will be required to participate in the cooperative and make on-going payments to the cooperative in such amounts and subject to such caps as established by the cooperative members. We anticipate that each Center franchisee will have one vote for each Center located within the cooperative market and that cooperative decisions shall be made based on approval of a simple majority vote with a quorum of not less than 25% of the designated cooperative members. Contributions to a local or regional cooperative that we designate will count toward satisfaction of your minimum local marketing requirements, if required. Contributions to a local or regional cooperative that we designate shall count toward the satisfaction of your local marketing obligations and shall not exceed local marketing requirements.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, contributions to a local or regional advertising cooperative that Mrcool designates can count toward satisfying the minimum local marketing requirements, if such requirements are in place. Furthermore, these contributions will not exceed the local marketing requirements.
Mrcool reserves the right to establish and require participation in a local or regional advertising cooperative within a Designated Market if two or more Centers are operating within a geographic area, region, or market that Mrcool designates. If such a cooperative is established, franchisees are required to participate and make ongoing payments as determined by the cooperative members.
Each Mrcool Center franchisee within the cooperative market is anticipated to have one vote per Center. Cooperative decisions are expected to be made based on a simple majority vote, with a quorum of at least 25% of the designated cooperative members. This structure ensures that franchisees have a voice in how cooperative funds are spent, while also setting a minimum participation level for decision-making.