Operations

Franchise Cooperative Advertising

Also known as: Co-op Advertising, Regional Ad Co-op

Franchise cooperative advertising is an arrangement where franchisees pool funds to create and run local or regional advertising campaigns, typically in addition to the national advertising fund managed by the franchisor. Co-ops are governed by the franchisees themselves and allow for marketing tailored to local market conditions. Some franchise agreements mandate co-op participation while others make it voluntary.

Real-World Example

Five Jersey Mike's franchisees in the Dallas-Fort Worth area form a co-op and each contribute $2,000 per month ($10,000 total) for regional radio and digital advertising, resulting in a 15% increase in catering orders across all participating locations.

Related Terms

Advertising Fund (Marketing Fund)
Financial
Franchisee Advisory Council (FAC)
Operations
Franchise Operations Manual
Operations

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Last updated: April 2026