What is the exclusive purpose of each Bombs Away Market Cooperative?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) Purpose. Each Market Cooperative shall be devoted exclusively to administering regional advertising and marketing programs and developing (subject to Bombs Away Franchising's approval) standardized promotional materials for use by the members in local advertising and promotion.
- (c) Approval. No advertising or promotional plans or materials may be used by a Market Cooperative or furnished to its members without the prior approval of Bombs Away Franchising pursuant to Section 9.1. Bombs Away Franchising may designate the national or regional advertising agencies used by the Market Cooperative.
- (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.
- (e) Enforcement. Only Bombs Away Franchising will have the right to enforce the obligations of franchisees who are members of a Market Cooperative to contribute to the Market Cooperative.
- (f) Termination. Bombs Away Franchising may terminate any Market Cooperative. Any funds left in a Market Cooperative upon termination will be transferred to the Marketing Fund.
- 9.5 Required Spending. Franchisee shall spend at least 5% of Gross Sales each month on marketing the Business. Upon request of Bombs Away Franchising, Franchisee shall furnish proof of its compliance with this Section. Bombs Away Franchising has the sole discretion to determine what activities constitute "marketing" under this Section. Bombs Away Franchising may, in its discretion, determine that if Franchisee contributes to a Market Cooperative, the amount of the contribution will be counted towards Franchisee's required spending under this Section.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, each Market Cooperative is dedicated solely to managing regional advertising and marketing initiatives. This includes creating standardized promotional materials, which are subject to approval by Bombs Away Franchising, for use by its members in local advertising and promotion.
Bombs Away Franchising retains significant control over these cooperatives. All advertising and promotional plans or materials require their prior approval, and they may designate the national or regional advertising agencies used by the Market Cooperative. This ensures that all marketing efforts align with the brand's overall strategy and standards.
Franchisees are required to join a Market Cooperative if one exists for their territory and must contribute to it. The contribution amount is determined by a majority vote of the cooperative members, but it must be between 1% and 5% of the franchisee's Gross Sales. Bombs Away Franchising also has the authority to enforce these contribution obligations and may terminate any Market Cooperative, with remaining funds being transferred to the Marketing Fund. Bombs Away may determine that contributions to the Market Cooperative count towards the franchisee's required marketing spending of at least 5% of Gross Sales each month.