If a Deck Medic Advertising Cooperative is instituted after the franchise agreement is signed, is the franchisee required to participate?

According to Deck Medic's 2024 Franchise Disclosure Document, if an Advertising Cooperative is established after the franchise agreement is signed and it includes the franchisee's Operating Territory or Deck Medic Business location, the franchisee is required to participate in and contribute to the Advertising Cooperative. This participation involves making ongoing financial contributions as determined by the Advertising Cooperative.

The establishment and authorization of Advertising Cooperatives are at the discretion of Deck Medic. Deck Medic has the sole right to designate the geographic areas where two or more Deck Medic Business franchises are located as a region for establishing an Advertising Cooperative. The cooperative's decisions are made by a simple majority vote, with a quorum of 25% of the franchisees within the cooperative.

Franchisees are obligated to execute all documents required by Deck Medic and become members of the Advertising Cooperative, adhering to its terms. The funds collected by the Advertising Cooperative are to be used exclusively for marketing programs and media development, all subject to Deck Medic's review and approval. Franchisee contributions to the Advertising Cooperative count toward satisfying the franchisee's minimum local marketing obligations as outlined in Article 9.B of the Franchise Agreement, but cannot exceed those obligations.

It's important to note that Deck Medic Businesses owned by Deck Medic or its affiliates within the Advertising Cooperative's geographic area are not required to contribute to the cooperative. All marketing materials and plans used by the Advertising Cooperative must receive prior written approval from Deck Medic, ensuring brand consistency and adherence to company standards.