Does Crave Cookies Franchising have the right to attend Market Cooperative meetings?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Governance. Each Market Cooperative will be organized and governed in a form and manner, and shall commence operations on a date, determined by Crave Cookies Franchising. Crave Cookies Franchising may require the Market Cooperative to adopt bylaws or regulations prepared by Crave Cookies Franchising. Unless otherwise specified by Crave Cookies Franchising, the activities carried on by each Market Cooperative shall be decided by a majority vote of its members. Crave Cookies Franchising will be entitled to attend and participate in any meeting of a Market Cooperative. Any Crave Cookies business owned by Crave Cookies Franchising in the Market Cooperative shall have the same voting rights as those owned by its franchisees. Each Business owner will be entitled to cast one vote for each Business owned, provided, however, that a franchisee shall not be entitled to vote if it is in default under its franchise agreement. If the members of a Market Cooperative are unable or fail to determine the manner in which Market Cooperative monies will be spent, Crave Cookies Franchising may assume this decision-making authority after 10 days' notice to the members of the Market Cooperative.
(b) Purpose. Each Market Cooperative shall be devoted exclusively to administering regional advertising and marketing programs and developing (subject to Crave Cookies Franchising's approval) standardized promotional materials for use by the members in local advertising and promotion.
(c) Approval. No advertising or promotional plans or materials may be used by a Market Cooperative or furnished to its members without the prior approval of Crave Cookies Franchising pursuant to Section 9.1. Crave Cookies Franchising may designate the national or regional advertising agencies used by the Market Cooperative.
(d) Funding. The majority vote of the Market Cooperative will determine the dues to be paid by members of the Market Cooperative, including Franchisee, but not less than 1% and not more than 5% of Gross Sales.
(e) Enforcement. Only Crave Cookies Franchising will have the right to enforce the obligations of franchisees who are members of a Market Cooperative to contribute to the Market Cooperative.
(f) Termination. Crave Cookies Franchising may terminate any Market Cooperative. Any funds left in a Market Cooperative upon termination will be transferred to the Marketing Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–29)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, Crave Cookies Franchising has the right to attend and participate in any meeting of a Market Cooperative. This means that Crave Cookies retains oversight and involvement in the advertising and marketing strategies developed at the local level. Any Crave Cookies business owned by Crave Cookies Franchising in the Market Cooperative has the same voting rights as those owned by its franchisees.
This arrangement allows Crave Cookies to stay informed about the cooperative's activities and to contribute to discussions and decisions. It also ensures that the cooperative's actions align with the overall brand strategy and standards. Franchisees should be aware that while they can participate in the Market Cooperative, Crave Cookies Franchising has the right to be present and involved in these meetings.
If the members of a Market Cooperative are unable or fail to determine the manner in which Market Cooperative monies will be spent, Crave Cookies Franchising may assume this decision-making authority after 10 days' notice to the members of the Market Cooperative. This ensures that funds are used effectively for regional advertising and marketing programs. Crave Cookies Franchising also has the right to enforce the obligations of franchisees who are members of a Market Cooperative to contribute to the Market Cooperative and may terminate any Market Cooperative.