Who decides the activities carried on by each Better Blend Market Cooperative?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
established during the term of this Agreement, Franchisee shall become a member of such Market Cooperative within 30 days of notice from BBF. BBF shall not require Franchisee to be a member of more than one Market Cooperative. If BBF establishes a Market Cooperative:
- (a) Governance. Each Market Cooperative will be organized and governed in a form and manner, and shall commence operations on a date, determined by BBF. BBF may require the Market Cooperative to adopt bylaws or regulations prepared by BBF. Unless otherwise specified by BBF, the activities carried on by each Market Cooperative shall be decided by a majority vote of its members. BBF will be entitled to attend and participate in any meeting of a Market Cooperative. Any Better Blend business owned by BBF in the Market Cooperative shall have the same voting rights as those owned by its franchisees.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the activities carried on by each Market Cooperative are generally decided by a majority vote of its members. However, Better Blend retains significant control over the Market Cooperative. Better Blend determines the form, manner, and start date of operations for each Market Cooperative. Better Blend may also require the Market Cooperative to adopt bylaws or regulations that Better Blend prepares.
If the members of a Market Cooperative are unable to decide how the Market Cooperative monies will be spent, Better Blend may assume decision-making authority after providing 10 days' notice to the members. Furthermore, all advertising and promotional plans or materials must receive prior approval from Better Blend. Better Blend can also designate the national or regional advertising agencies that the Market Cooperative uses.
Better Blend is entitled to attend and participate in any meeting of a Market Cooperative, and any Better Blend business owned by Better Blend in the Market Cooperative has the same voting rights as those owned by its franchisees. This ensures that Better Blend has a voice in the Market Cooperative's decisions. Franchisees are required to become members of the Market Cooperative if one exists for their geographic area, further emphasizing the importance of these cooperatives in Better Blend's marketing strategy.
These stipulations mean that while franchisees have a say in the activities of the Market Cooperative through their vote, Better Blend maintains considerable oversight and control. This structure ensures brand consistency and allows Better Blend to step in if the cooperative is unable to function effectively or if its decisions do not align with the brand's overall marketing strategy.