What powers does Care Plus Medical Ucc have over advertising cooperatives?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
Local or Regional Advertising Cooperatives. We do not currently have any local or regional advertising cooperatives. We have the right to require you to participate in a local or regional advertising cooperative. We will define the area of the cooperative based on media markets, or other geographic criteria that we deem appropriate. Each franchisee in the area would have one vote per outlet (unless the franchisee is in default under its franchise agreement). The amount you must contribute to the cooperative will be determined by vote of the members, but not less than 1% and not more than 5% of gross sales. If our own outlets are members of a cooperative, they must contribute to the cooperative on the same basis as franchisees, and they will vote on the same basis as other members. We administer the cooperative, but we have the right to delegate responsibility for administration to an outside company such as an advertising agency or accounting firm, or to the franchisee members of the cooperative. We have the right to require the cooperative to operate from written bylaws or other governing documents that we determine. The documents are not currently available for you to review. Cooperatives will prepare annual financial statements which will be made available for review only by us and by the members of cooperative. We have the power to require cooperatives to be formed, changed, dissolved, or merged.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–28)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, while they do not currently have any local or regional advertising cooperatives, they retain significant control should they choose to implement them. Care Plus Medical Ucc has the right to require franchisees to participate in these cooperatives, defining the cooperative's area based on media markets or other geographic criteria they deem appropriate. Each franchisee gets one vote per outlet, unless they are in default of their franchise agreement.
The amount franchisees must contribute to the cooperative will be determined by a vote of the members, but it will not be less than 1% and not more than 5% of gross sales. If Care Plus Medical Ucc's own outlets are members, they must contribute and vote on the same basis as franchisees. Care Plus Medical Ucc also has the power to administer the cooperative, with the option to delegate this responsibility to an outside company or the franchisee members.
Furthermore, Care Plus Medical Ucc can require the cooperative to operate under written bylaws or other governing documents that they determine. While these documents are not currently available for review, Care Plus Medical Ucc retains the power to require cooperatives to be formed, changed, dissolved, or merged. This level of control gives Care Plus Medical Ucc considerable influence over the advertising strategies and financial operations of any local or regional advertising cooperatives that may be established.