Is Bombs Away Franchising entitled to attend meetings of a Market Cooperative?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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, Bombs Away Franchising is entitled to attend and participate in any meeting of a Market Cooperative. Furthermore, if Bombs Away Franchising owns a business in the Market Cooperative, that business has the same voting rights as those owned by its franchisees, with each business owner entitled to one vote per business owned, provided the franchisee is not in default under their franchise agreement.
If the members of a Market Cooperative cannot agree on how to spend the cooperative's funds, Bombs Away Franchising can assume decision-making authority after providing 10 days' notice to the members. This demonstrates Bombs Away's significant control over the Market Cooperative's operations and financial decisions.
This arrangement gives Bombs Away Franchising considerable influence over the Market Cooperative, allowing it to guide marketing and promotional activities. For a franchisee, this means that while they have a voice in the Market Cooperative, Bombs Away Franchising ultimately has the power to direct its activities, especially if the members are deadlocked or if Bombs Away Franchising owns businesses within the cooperative.