What voting provisions can Beard Papas establish for the Advertising Cooperative?
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, Beard Papas has the authority to establish the foundational and organizational requirements for the Advertising Cooperative. This includes setting the voting provisions.
Specifically, Beard Papas can implement voting provisions that allow the Advertising Cooperative to make decisions based on a simple majority vote. Each franchisee Shop located within the designated area of the Advertising Cooperative gets one vote.
For the Advertising Cooperative to conduct business, a quorum of 25% of the franchisees within the Advertising Cooperative must be present. This means that at least 25% of the franchisees need to participate for any vote to be valid. This ensures that decisions are not made by a small minority of franchisees and that there is sufficient representation from the members of the cooperative.