What voting provisions are allowed within the Bang Cookies Advertising Cooperative?

According to Bang Cookies's 2024 Franchise Disclosure Document, the advertising cooperative's voting provisions allow the cooperative to make decisions based on a simple majority vote, with each franchisee Shop located within the designated area of the Advertising Cooperative having one vote. A quorum is established when 25% of the franchisees within the Advertising Cooperative are present.

This means that if a Bang Cookies franchisee's Shop is located within an area designated for an Advertising Cooperative, they are required to participate in the cooperative and contribute financially. The decisions regarding the marketing programs and media development are made by a simple majority vote among the participating franchisees, provided that at least 25% of the franchisees are present to form a quorum. However, all marketing plans and media must be reviewed and approved by Bang Cookies.

For a prospective Bang Cookies franchisee, this implies that they will have a direct say in the local and regional marketing strategies through their vote in the Advertising Cooperative. However, their influence is subject to the majority vote of other franchisees and the final approval of Bang Cookies. This structure ensures that while franchisees have a voice, the franchisor maintains control over brand consistency and marketing effectiveness.

It is also important to note that Bang Cookies retains the right to authorize, establish, designate, and de-authorize any local or regional advertising cooperative. Furthermore, Shops owned by Bang Cookies or its affiliates within the designated area are not required to contribute to the Advertising Cooperative, which could potentially impact the financial dynamics and voting power within the cooperative.