Who determines the dues to be paid by members of a Bombs Away Market Cooperative?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (d) Funding. The majority vote of the Market Cooperative will determine the dues to be paid by members of the Market Cooperative, including Franchisee, but not less than 1% and not more than 5% of Gross Sales.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the majority vote of the Market Cooperative determines the dues to be paid by its members, including franchisees. These dues are allocated for regional advertising and marketing programs. The dues must be no less than 1% and no more than 5% of Gross Sales.
Bombs Away Franchising retains significant control over the Market Cooperative. Bombs Away Franchising must approve all advertising and promotional plans or materials used by the Market Cooperative. Bombs Away Franchising also has the right to designate the national or regional advertising agencies used by the Market Cooperative. Additionally, Bombs Away Franchising is entitled to attend and participate in any meeting of a Market Cooperative.
Bombs Away Franchising also has the sole right to enforce the obligations of franchisees to contribute to the Market Cooperative. Bombs Away Franchising may terminate any Market Cooperative, and any funds remaining upon termination will be transferred to the Marketing Fund. If the members of a Market Cooperative are unable or fail to determine how the 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.