What is the definition of 'Advertising Cooperative' for Bang Cookies franchisees, as detailed in Article 9.F of the Franchise Agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
9.F. ADVERTISING COOPERATIVE
At all times Franchisor, in Franchisor's Reasonable Business Judgment, possesses the right to authorize, establish, designate and de-authorize a local or regional advertising cooperative within those markets that
Franchisor designates (the "Advertising Cooperative"). Franchisee agrees that Franchisor possesses the sole and exclusive right to designate any geographic area in which two or more Shop franchises are located as a region for the purpose of establishing an Advertising Cooperative. If Franchisee's Shop or Designated Territory is located within the geographic area of an Advertising Cooperative, franchisee must participate in and contribute to the Advertising Cooperative. Franchisee agrees to the following:
(1) If Franchisor previously instituted or, in the future, institutes an Advertising Cooperative that includes, in whole or in part, Franchisee's Designated Territory or Franchisee's Shop Location, Franchisee shall participate in and make such on-going financial contributions to the Advertising Cooperative, as determined by the Advertising Cooperative;
(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;
(3) Unless otherwise authorized and approved by Franchisor in writing, each Advertising Cooperative shall be organized for the exclusive purpose of administering marketing programs and the development of media (all subject to the review and approval of Franchisor) for use by members of the Advertising Cooperative in local or regional marketing;
(4) If at the time of execution of this Agreement an Advertising Cooperative has been established for a geographic area that includes, in whole or in part, Franchisee's Shop location or Designated Territory, or if such Advertising Cooperative is established during the Term of this Agreement, Franchisee shall fully participate in the Advertising Cooperative and Franchisee shall execute, at the request of Franchisor, all documents required by Franchisor and Franchisee shall become a member of the Advertising Cooperative subject to the terms of those documents;
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, an Advertising Cooperative is defined within Article 9.F of the franchise agreement. Bang Cookies retains the right to authorize, establish, designate, and de-authorize local or regional advertising cooperatives in markets they designate. If a franchisee's shop is within the geographic area of an Advertising Cooperative, they must participate and contribute to it.
Bang Cookies maintains the sole right to designate any geographic area with two or more franchise locations as a region for establishing an Advertising Cooperative. The franchisor may establish foundational and organizational requirements, including voting provisions, allowing the cooperative to make decisions based on a simple majority vote (one vote per franchisee shop) with a quorum of 25% of franchisees within the cooperative.
Unless authorized by Bang Cookies in writing, each Advertising Cooperative is organized to administer marketing programs and develop media for use by its members in local or regional marketing, all subject to the franchisor's review and approval. If an Advertising Cooperative exists at the time of the agreement or is established during the agreement's term, the franchisee must fully participate and execute all required documents to become a member.