How are decisions made within a Deck Medic Advertising Cooperative?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees to the following:
(2) Franchisor may establish foundational and organizational requirements of the Advertising Cooperative including voting provisions that allows the Advertising Cooperative to make decisions based on the simple majority vote (one vote per franchisee Deck Medic Business located within the designated area of the Advertising Cooperative) with a quorum constituting 25% of those franchisees within the Advertising Cooperative;
(8) Deck Medic Businesses owned by Franchisor and/or Franchisor's affiliates that are located within the geographic area of the designated Advertising Cooperative are not required to make contributions to the Advertising Cooperative; and
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, decision-making within an Advertising Cooperative is based on a simple majority vote, with each franchisee Deck Medic Business in the designated area having one vote. A quorum, which is the minimum number of members needed to conduct business, is constituted by 25% of the franchisees within the Advertising Cooperative. This means that for a vote to be valid, at least 25% of the franchisees in the cooperative must be present.
Deck Medic retains significant control over the Advertising Cooperative. The franchisor has the right to authorize, establish, designate, and de-authorize these cooperatives. Furthermore, all marketing programs and media developed by the cooperative are subject to Deck Medic's review and approval. This ensures that all advertising aligns with the brand's standards and marketing strategies.
Franchisees are obligated to participate in and contribute to the Advertising Cooperative if their Deck Medic Business or Operating Territory falls within the cooperative's geographic area. However, Deck Medic Businesses owned by the franchisor or its affiliates within the cooperative's area are not required to contribute. This could potentially create a situation where some businesses benefit from the cooperative's advertising efforts without contributing financially.
In summary, while the Advertising Cooperative allows franchisees to have a say in local and regional marketing efforts through majority voting, Deck Medic maintains ultimate control over the cooperative's existence, structure, and marketing content. Franchisees should be aware of their obligations to participate and contribute, as well as the limitations on their autonomy in marketing decisions.