What is the quorum requirement for the Beard Papas Advertising Cooperative to make decisions?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 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 (one 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 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the quorum requirement for the Advertising Cooperative is 25% of the franchisees within the cooperative. Decisions are made based on a simple majority vote, with each franchisee shop located within the designated area of the Advertising Cooperative having one vote.
This means that for the Advertising Cooperative to conduct business and make decisions, at least 25% of the franchisees in that cooperative must be present or participating. If the quorum is met, decisions are then determined by a simple majority vote, ensuring that each franchisee has a say in the cooperative's activities.
This structure allows Beard Papas to ensure that a significant portion of franchisees are engaged in the decision-making process of the Advertising Cooperative, while also enabling the cooperative to function efficiently with a simple majority voting system. Franchisees should be aware of these voting provisions and participation requirements as part of their obligations to the Advertising Cooperative.