What foundational and organizational requirements can Beard Papas establish for an Advertising Cooperative?

According to the 2025 Beard Papas FDD, Beard Papas has the authority to establish the foundational and organizational requirements for its Advertising Cooperative. This includes setting the voting provisions, which allow the Advertising Cooperative to make decisions based on a simple majority vote. Each franchisee shop within the designated area of the cooperative gets one vote.

A critical aspect of these requirements is the establishment of a quorum. Beard Papas stipulates that a quorum must consist of 25% of the franchisees within the Advertising Cooperative for any decisions to be valid. This ensures that a significant portion of the franchisees are represented and involved in the decision-making process.

Furthermore, Beard Papas mandates that each Advertising Cooperative be organized exclusively for administering marketing programs and developing media. However, all marketing programs and media development are subject to review and approval by Beard Papas. This centralized control ensures brand consistency and adherence to the company's overall marketing strategy. For a prospective franchisee, this means that while they will participate in the Advertising Cooperative, Beard Papas retains significant oversight over its operations and marketing initiatives.