If a Crawlspace Medic regional cooperative is established, how many votes will each outlet have?
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, if a regional cooperative is established, each Crawlspace Medic outlet will have one vote in the cooperative. The franchisor will determine in advance how each cooperative will be organized and governed, retaining the right to form, dissolve, merge, or change the structure of the cooperatives.
This means that each franchisee will have an equal say in regional cooperative matters, regardless of their outlet's size or revenue. However, Crawlspace Medic maintains significant control over the cooperative's structure and operation.
For a prospective franchisee, this indicates that while they will have a voice in regional advertising and marketing decisions, Crawlspace Medic ultimately controls the cooperative's framework. Franchisees must also sign all documents requested by Crawlspace Medic and become members of the cooperative according to the set terms.