How many votes does each Casiola Business franchisee have in a local or regional advertising cooperative?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Note 5: Local and Regional Advertising Cooperatives – If two or more Casiola Businesses are operating within a geographic area, region, or market designated by us (a "designated market"), we reserve the right to establish and require your participation in a local or regional advertising cooperative within the designated market. If an advertising cooperative is established within a designated market that includes your Casiola Business(s), you will be required to participate in the cooperative and make on-going payments to the cooperative in such amounts and subject to such caps as established by the cooperative members. We anticipate that each Casiola Business franchisee will have one vote for each Casiola Business located within the cooperative market and those cooperative decisions shall be made based on approval of a simple majority vote with a quorum of not less than 25% of the designated cooperative members. Contributions to a local or regional cooperative that we designate will count toward satisfaction of your minimum local marketing requirements and shall not exceed the local marketing requirement.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, each Casiola Business franchisee will have one vote for each Casiola Business they operate within a designated cooperative market. These cooperatives may be established by Casiola if two or more Casiola Businesses are operating within a specific geographic area, region, or market.
The decisions within these local or regional advertising cooperatives are made based on a simple majority vote. However, a quorum of at least 25% of the designated cooperative members must be present for the vote to be valid. This ensures that a sufficient number of franchisees participate in the decision-making process.
Franchisees are required to participate in these cooperatives and make ongoing payments, with the amounts determined by the cooperative members themselves. Contributions to these cooperatives can be used to satisfy the franchisee's minimum local marketing requirements, provided that the contributions do not exceed the local marketing requirement. This structure allows for collective marketing efforts while ensuring individual franchisees have a voice in how marketing funds are spent within their region.