How is the area of a Bombs Away advertising cooperative defined?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
Local or Regional Advertising Cooperatives. We do not currently have any local or regional advertising cooperatives. We have the right to require you to participate in a local or regional advertising cooperative. We will define the area of the cooperative based on media markets, or other geographic criteria that we deem appropriate. Each franchisee in the area would have one vote per outlet (unless the franchisee is in default under its franchise agreement). The amount you must contribute to the cooperative will be determined by vote of the members, but not less than 1% of gross sales and not more than 5% of gross sales. If our own outlets are members of a cooperative, they must contribute to the cooperative on the same basis as franchisees, and they will vote on the same basis as other members. We administer the cooperative, but we have the right to delegate responsibility for administration to an outside company such as an advertising agency or accounting firm, or to the franchisee members of the cooperative. We have the right to require the cooperative to operate from written bylaws or other governing documents that we determine. The documents are not currently available for you to review. Cooperatives will prepare
annual financial statements which will be made available for review only by us and by the members of cooperative. We have the power to require cooperatives to be formed, changed, dissolved, or merged.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 18–23)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the area of any local or regional advertising cooperative will be defined by Bombs Away based on media markets or other geographic criteria that Bombs Away deems appropriate. Bombs Away does not currently have any local or regional advertising cooperatives, but they retain the right to require franchisees to participate in one.
Each Bombs Away franchisee within the cooperative area has one vote per outlet, unless they are in default of their franchise agreement. The amount each franchisee contributes to the cooperative is determined by a vote of the members, but must be between 1% and 5% of gross sales. If Bombs Away owns outlets within the cooperative, those outlets must contribute on the same basis as franchisees and vote on the same basis as other members.
Bombs Away administers the cooperative, but they can delegate this responsibility to an outside company or to the franchisee members. Bombs Away also has the right to require the cooperative to operate from written bylaws or other governing documents that Bombs Away determines. These documents are not currently available for review. Cooperatives will prepare annual financial statements which will be available for review only by Bombs Away and the members of the cooperative. Bombs Away has the power to require cooperatives to be formed, changed, dissolved, or merged.