Who can review the annual financial statements of a Chocolate Bash advertising cooperative?

According to Chocolate Bash's 2024 Franchise Disclosure Document, the annual financial statements of any advertising cooperatives will be available for review by Chocolate Bash itself, and by the members of the cooperative. Chocolate Bash retains the authority to mandate the formation, modification, dissolution, or merging of these cooperatives.

It is important to note that while franchisees may be required to participate in local or regional advertising cooperatives, Chocolate Bash has the power to define the cooperative's area based on media markets or other geographic criteria. Each franchisee within the cooperative's area has one vote per outlet, unless they are in default of their franchise agreement. The amount each franchisee contributes to the cooperative is determined by a vote of the members, but it will not be less than 1% of gross sales.

If Chocolate Bash's own outlets are members of a cooperative, they must contribute on the same basis as franchisees and vote on the same basis as other members. However, if Chocolate Bash's outlets have controlling voting power, there is no maximum on the fees that could be imposed on franchisees. Chocolate Bash also has the right to administer the cooperative or delegate this responsibility to an outside company or the franchisee members of the cooperative. Additionally, Chocolate Bash can require the cooperative to operate from written bylaws or other governing documents that they determine.