Who will comprise a Crawlspace Medic regional cooperative?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Currently, our System has no regional advertising fund or cooperative. However, we may decide to establish a regional fund or cooperative in the future and your participation may be mandatory, in our sole discretion. A regional cooperative will be comprised of all franchised Crawlspace Medic outlets in a designated geographic area. Our affiliateowned outlets may participate in a regional cooperative, in our sole discretion. Each Crawlspace Medic outlet will have one vote in the cooperative. We will determine in advance how each cooperative will be organized and governed. We have the right to form, dissolve, merge or change the structure of the cooperatives. If a cooperative is established during the term of your Franchise Agreement, you must sign all documents we request and become a member of the cooperative according to the terms of the documents.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–29)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, a regional cooperative will consist of all franchised Crawlspace Medic outlets within a specific geographic area. The franchisor, in its sole discretion, may also allow affiliate-owned outlets to participate in the regional cooperative. Each Crawlspace Medic outlet, whether franchised or affiliate-owned (if allowed), has one vote in the cooperative.
This means that if Crawlspace Medic establishes a regional advertising cooperative, franchisees within that region will automatically be members. The inclusion of affiliate-owned outlets is at Crawlspace Medic's discretion, giving them flexibility in managing the cooperative's dynamics. Each outlet gets a single vote, ensuring that even larger, multi-unit franchisees do not disproportionately control the cooperative's decisions.
The franchisor retains significant control over the regional cooperatives. Crawlspace Medic determines how each cooperative is organized and governed, and has the right to form, dissolve, merge, or change the structure of the cooperatives. Franchisees are obligated to sign all documents and become members of the cooperative according to the terms set by Crawlspace Medic. This gives Crawlspace Medic the power to adjust the cooperative structure as needed, but it also means franchisees must comply with the franchisor's decisions regarding the cooperative.
It is important for prospective franchisees to understand that participation in a regional cooperative may become mandatory if Crawlspace Medic decides to establish one in the future. Franchisees will be required to contribute financially to the cooperative, in addition to their contributions to the Brand Fund. The franchisor has the authority to determine the contribution amounts. Franchisees should inquire about the potential costs and obligations associated with regional cooperatives to fully understand their financial commitments.