What constitutes a quorum for decision-making within the Bang Cookies Advertising Cooperative?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
- (2) Franchisor may establish foundational and organizational requirements of the Advertising Cooperative including voting provisions that allows the Advertising Cooperative to make decisions based on the simple majority vote (1 vote per franchisee Shop located within the designated area of the Advertising Cooperative) with a quorum constituting 25% of those franchisees within the Advertising Cooperative;
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, a quorum for the Advertising Cooperative is defined as 25% of the franchisees within the cooperative. Decisions are made based on a simple majority vote, with each Bang Cookies shop location within the designated area having one vote.
This means that for any vote to be valid, at least 25% of the franchisees in the Advertising Cooperative must be present or participating. If a Bang Cookies franchisee's shop is within the area covered by the cooperative, they must participate and contribute financially as determined by the cooperative. However, these contributions count towards the franchisee's minimum local marketing obligations, as outlined in the franchise agreement.
Bang Cookies retains significant control over the Advertising Cooperative. The franchisor has the right to establish the cooperative, define its organizational requirements (including voting provisions), and review and approve all marketing programs and media developed by the cooperative. Furthermore, shops owned by Bang Cookies or its affiliates are not required to contribute to the Advertising Cooperative, which could potentially shift the financial burden onto the franchisees.
Prospective franchisees should be aware of these conditions, as they highlight the franchisor's influence over the cooperative and the financial obligations of franchisees. It is important to understand how the Advertising Cooperative operates, how decisions are made, and how the franchisee's contributions are determined and managed.