What are Market Cooperatives, as defined by Care Plus Medical Ucc?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
are an unaudited annual financial statement of the Marketing Fund within 120 days of the close of Care Plus Medical UCC's fiscal year and will provide the financial statement to Franchisee upon request.
- 9.4 Market Cooperatives. Care Plus Medical UCC may establish market advertising and promotional cooperative funds ("Market Cooperative") in any geographical areas. If a Market Cooperative for the geographic area encompassing the Location has been established at the time Franchisee commences operations hereunder, Franchisee shall immediately become a member of such Market Cooperative. If a Market Cooperative for the geographic area encompassing the Location is established during the term of this Agreement, Franchisee shall become a member of such Market Cooperative within 30 days. Care Plus Medical UCC shall not require Franchisee to be a member of more than one Market Cooperative. If Care Plus Medical UCC establishes a Market Cooperative:
- (a) Governance. Each Market Cooperative will be organized and governed in a form and manner, and shall commence operations on a date, determined by Care Plus Medical UCC. Care Plus Medical UCC may require the Market Cooperative to adopt bylaws or regulations prepared by Care Plus Medical UCC. Unless otherwise specified by Care Plus Medical UCC, the activities carried on by each Market Cooperative shall be decided by a majority vote of its members. Care Plus Medical UCC will be entitled to attend and participate in any meeting of a Market Cooperative. Any Care Plus Medical business owned by Care Plus Medical UCC 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, Care Plus Medical UCC may assume this decision-making authority after 10 days' notice to the members of the Market Cooperative.
- (b) Purpose. Each Market Cooperative shall be devoted exclusively to administering regional advertising and marketing programs and developing (subject to Care Plus Medical UCC'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 Care Plus Medical UCC pursuant to Section 9.1. Care Plus Medical UCC 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 Care Plus Medical UCC 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. Care Plus Medical UCC 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 2% of Gross Sales each month on marketing the Business. Upon request of Care Plus Medical UCC, Franchisee shall furnish proof
of its compliance with this Section. Care Plus Medical UCC has the sole discretion to determine what activities constitute "marketing" under this Section. Care Plus Medical UCC 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.
9.6 Market Introduction Plan. Franchisee must develop a market introduction plan and obtain Care Plus Medical UCC's approval of the market introduction plan at least 30 days before the projected opening date of the Business.
**ARTICLE 10.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, Market Cooperatives are defined as market advertising and promotional cooperative funds that Care Plus Medical Ucc may establish in any geographical area. If a Market Cooperative exists in the franchisee's area when they start operating, they must join immediately. If one is created later, the franchisee has 30 days to join. Care Plus Medical Ucc will not require a franchisee to be a member of more than one Market Cooperative. Each cooperative will be organized and governed as determined by Care Plus Medical Ucc, who may also require the adoption of bylaws or regulations they prepare. Unless Care Plus Medical Ucc specifies otherwise, the activities are decided by a majority vote of the members.
The purpose of each Market Cooperative is to administer regional advertising and marketing programs and develop standardized promotional materials for local advertising, subject to Care Plus Medical Ucc's approval. All advertising and promotional plans or materials must be approved by Care Plus Medical Ucc, who may also designate the advertising agencies used by the cooperative.
Funding for the Market Cooperative is determined by a majority vote of its members, with dues ranging from 1% to 5% of Gross Sales. Care Plus Medical Ucc is responsible for enforcing the contribution obligations of franchisees within the cooperative. Care Plus Medical Ucc also retains the right to terminate any Market Cooperative, with any remaining funds being transferred to the Marketing Fund. Franchisees are required to spend at least 2% of Gross Sales each month on marketing, and Care Plus Medical Ucc may count contributions to a Market Cooperative towards this requirement.