If a Bee Organized advertising cooperative is established, how many votes does each franchisee have?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 6: Advertising Cooperatives – If two or more Bee Organized Businesses are operating within a geographic area, region, or market designated by us (a "designated market"), we reserve the right to establish and require your participation in a local or regional advertising cooperative within the designated market. If established, you will be required to participate in the cooperative and make on-going payments to the cooperative in such amounts and subject to such caps as established by the cooperative members. We anticipate that each Bee Organized Business franchisee will have one vote for each Bee Organized Business located within the cooperative market and those cooperative decisions shall be made based on approval of a simple majority vote with a quorum of not less than 25% of the designated cooperative members. Contributions to a local or regional cooperative that we designate will count toward satisfaction of your minimum local marketing requirements but shall not exceed your local marketing requirement.
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, if the franchisor establishes an advertising cooperative within a designated market, each Bee Organized franchisee within that cooperative will have one vote for each Bee Organized Business they operate within the cooperative market. Decisions made by the cooperative require a simple majority vote, provided that at least 25% of the designated cooperative members are present to form a quorum.
This means that a franchisee's voting power is directly tied to the number of Bee Organized businesses they own and operate within the specific geographic area covered by the cooperative. A franchisee with multiple locations in the cooperative's area would have a proportionally larger say in advertising decisions compared to a franchisee with only one location. This structure aims to give more influence to those with a greater stake in the local market's performance.
The establishment of an advertising cooperative is not guaranteed, as Bee Organized reserves the right to create one only if two or more businesses are operating within a designated market. If a cooperative is formed, participation is mandatory for franchisees within that market. Franchisees should inquire about the criteria and process Bee Organized uses to determine designated markets and the likelihood of a cooperative being established in their area.
Contributions to the advertising cooperative can count towards the franchisee's minimum local marketing requirements, but these contributions cannot exceed that requirement. This integration aims to streamline marketing efforts and ensure that cooperative activities align with individual franchisee obligations. Franchisees need to understand how the cooperative's budget and activities will be determined and how they can influence these decisions to best support their local marketing goals.