If Buns On Fire establishes a cooperative, who will be included as members?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
We currently do not have any cooperatives. However, if we choose to, we may designate a geographic area in which two (2) or more Franchise Businesses are located as a region in order to establish a cooperative. The cooperative's members in any area will include all of the Franchise Businesses operating in that area (including us or our affiliates, if applicable). Each cooperative will be organized and governed in a form and manner, and begin operating on a date, that we determine. Each cooperative will operate in accordance with a written governing document which we may amend at any time upon written notice to the cooperative's members. Each cooperative's purpose is, with our approval, to administer advertising programs and develop advertising, marketing and promotional materials for the area that the cooperative covers. You must become a member of any cooperative whose area includes your Franchise Business and must contribute to the cooperative the amounts determined by the cooperative.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 25–33)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, if Buns On Fire chooses to designate a geographic area with two or more franchise businesses as a region to establish a cooperative, the cooperative's members in that area will include all franchise businesses operating in that area. This includes Buns On Fire itself or its affiliates, if applicable.
Each cooperative will be organized and governed in a form and manner, and begin operating on a date, that Buns On Fire determines. The cooperative will operate according to a written governing document, which Buns On Fire may amend at any time with written notice to the cooperative's members. The purpose of each cooperative is to administer advertising programs and develop advertising, marketing, and promotional materials for the area, with Buns On Fire's approval.
For a prospective franchisee, this means that if a Buns On Fire franchise is located in an area where a cooperative is established, they must become a member and contribute the amounts determined by the cooperative. This participation is mandatory, and the franchisee has limited control over the cooperative's activities, as Buns On Fire retains significant authority over its operation and governing documents.