What happens if a Deck Medic advertising cooperative exceeds nine franchisee members?

According to Deck Medic's 2024 Franchise Disclosure Document, if a local or regional advertising cooperative exceeds nine franchisee members, Deck Medic may require that the cooperative establish formal governing documents. The purpose of these cooperatives is for franchisees to pool resources for local advertising efforts. Deck Medic retains the right to authorize, establish, designate, and de-authorize these cooperatives.

Franchisees within a cooperative are responsible for administering it, including determining contribution amounts, marketing expenditures, and allocations. However, Deck Medic may require that cooperative decisions be based on a simple majority vote of franchisee members, with one vote per Deck Medic business and a quorum of at least 25% of the designated franchisee cooperative members. Franchisees are required to participate in these cooperatives if they exist in their market area, and contributions cannot exceed 5% of monthly gross sales.

Each cooperative must prepare annual unaudited financial statements for review by its members. Deck Medic also reserves the right to form, change, dissolve, or merge any advertising cooperative. As of the issuance date of the 2024 Disclosure Document, Deck Medic has not established any local or regional advertising cooperatives but reserves the right to do so in the future.