What constitutes a quorum for decision-making within a 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's 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 quorum is present, a simple majority of those voting is sufficient to pass a resolution. This structure ensures that a significant portion of the franchisees must be involved for any decision to be legitimate.
For a prospective Bang Cookies franchisee, this implies that their participation in the Advertising Cooperative, if their shop is located within its geographic area, is mandatory. They will have a direct say in marketing programs and media development through their vote. However, the franchisor retains the right to review and approve all marketing materials. Franchisees should be aware of the voting provisions and quorum requirements to effectively participate in the cooperative's decision-making processes.
It's also important to note that Bang Cookies shops owned by the franchisor or its affiliates are not required to contribute to the Advertising Cooperative, which could potentially impact the financial dynamics and decision-making power within the cooperative. Franchisees should consider this when evaluating the potential benefits and obligations of joining the Advertising Cooperative.