Who decides the activities carried on by each Bombs Away Market Cooperative?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
Unless otherwise specified by Bombs Away Franchising, the activities carried on by each Market Cooperative shall be decided by a majority vote of its members.
Bombs Away Franchising will be entitled to attend and participate in any meeting of a Market Cooperative.
Any Bombs Away business owned by Bombs Away Franchising in the
Market Cooperative shall have the same voting rights as those owned by its franchisees. Each Business owner will be entitled to cast one vote for each Business owned, provided, however, that a franchisee shall not be entitled to vote if it is in default under its franchise agreement. If the members of a Market Cooperative are unable or fail to determine the manner in which Market Cooperative monies will be spent, Bombs Away Franchising may assume this decision-making authority after 10 days' notice to the members of the Market Cooperative.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the activities carried on by each Market Cooperative are typically decided by a majority vote of its members. This means that franchisees within a specific geographic area who are part of the Market Cooperative have a direct say in how the cooperative's funds are spent on regional advertising and marketing programs.
However, Bombs Away Franchising retains significant control over the Market Cooperative. Bombs Away Franchising determines the form, manner, and start date of the Market Cooperative. Bombs Away Franchising may also require the Market Cooperative to adopt bylaws or regulations that they prepare. Furthermore, Bombs Away Franchising is entitled to attend and participate in any meeting of a Market Cooperative and has the same voting rights as franchisees for any Bombs Away business they own in the Market Cooperative.
Ultimately, if the members of a Market Cooperative are unable or fail to decide how the cooperative's money will be spent, Bombs Away Franchising may step in and assume decision-making authority after providing 10 days' notice to the members. This ensures that even if the members cannot agree, the Market Cooperative can still function effectively. This structure gives Bombs Away franchisees a voice in regional marketing efforts while also ensuring that Bombs Away Franchising maintains oversight and control.