Common use of Cooperatives Clause in Contracts

Cooperatives. The Company may designate a local, regional or national advertising coverage area in which the Franchisee's ▇▇▇▇▇▇'▇ Grill and at least one other ▇▇▇▇▇▇'▇ Grill is located for the purpose of developing an advertising or promotional cooperative. The Company has the power, in its sole discretion, to require cooperatives to be formed, changed, dissolved or merged. The Franchisee will be required to participate in and contribute to any cooperative designated in the Franchisee's coverage area. The costs of the program will be allocated among franchisees in the coverage area, and each franchisee's share of the costs for a given year will be in proportion to its respective Gross Revenues during the preceding year.