Does Crab N Spice require the advertising cooperative to operate from written bylaws?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
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 20–27)
What This Means (2024 FDD)
According to Crab N Spice's 2024 Franchise Disclosure Document, Crab N Spice has the right to require any local or regional advertising cooperative to operate from written bylaws or other governing documents that Crab N Spice determines. These documents are not currently available for review by prospective franchisees.
Crab N Spice also has the power to require cooperatives to be formed, changed, dissolved, or merged. The cooperative will prepare annual financial statements, but these will only be available for review by Crab N Spice and the members of the cooperative.
This means that while Crab N Spice franchisees may participate in a local advertising cooperative, Crab N Spice retains significant control over the cooperative's operations, structure, and governing documents. Prospective franchisees should inquire about the specific terms and conditions Crab N Spice might impose on any advertising cooperatives.