Who decides the activities carried on by each Crab N Spice Market Cooperative?

According to Crab N Spice's 2024 Franchise Disclosure Document, the activities carried on by each Market Cooperative are generally decided by a majority vote of its members. This means that franchisees who are part of the cooperative have a direct say in the marketing and advertising strategies pursued at the regional level. However, this is not an absolute rule, as CNS Franchising retains the right to specify otherwise.

CNS Franchising maintains significant oversight over the Market Cooperative's activities. The document states that CNS Franchising may require the Market Cooperative to adopt bylaws or regulations prepared by them. This allows Crab N Spice to ensure that the cooperative operates in a manner consistent with the overall brand strategy and standards. Additionally, CNS Franchising is entitled to attend and participate in any meeting of a Market Cooperative, further solidifying their influence.

It's also important to note that CNS Franchising has the authority to step in and make decisions regarding the Market Cooperative's funds if the members are unable to reach an agreement. This clause ensures that the cooperative's funds are used effectively for regional advertising and marketing, even if the members are deadlocked. Furthermore, all advertising and promotional plans or materials must receive prior approval from CNS Franchising, giving them final say over the Market Cooperative's output.