What voting provisions can the Bee Organized franchisor establish for the Advertising Cooperative?
Bee_Organized 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 Bee Organized Business 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 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the franchisor has the authority to establish the foundational and organizational requirements for the Advertising Cooperative, including voting provisions. Specifically, Bee Organized can implement a voting structure that allows the Advertising Cooperative to make decisions based on a simple majority vote. Each franchisee Bee Organized Business located within the designated area of the Advertising Cooperative gets one vote.
To ensure sufficient participation, Bee Organized can set a quorum requirement for the Advertising Cooperative's meetings. The FDD states that a quorum can be established as 25% of the franchisees within the Advertising Cooperative. This means that at least 25% of the franchisees in the cooperative must be present for a vote to be valid and for decisions to be binding.
This structure gives Bee Organized significant control over the Advertising Cooperative, as they can define the voting rules and quorum requirements. However, it also ensures that franchisees have a voice in the cooperative's decisions through the simple majority vote system. Prospective franchisees should be aware of these provisions and how they might impact their participation in and contribution to the Advertising Cooperative. Franchisees should also note that all marketing materials and media developed by the Advertising Cooperative are subject to review and approval by Bee Organized.