Who is responsible for administering the local or regional advertising cooperative, including determining contribution amounts and marketing expenditures for Deck Medic?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- Local and Regional Advertising Cooperative – We possess the exclusive right to authorize, establish, designate and de-authorize a local or regional advertising cooperative within those markets that we designate. We will exclusively determine the geographic and other boundaries constituting each respective cooperative and factors that we will consider include media markets including print, television and digital. If we establish a cooperative within a market that includes your Deck Medic Business, you must contribute to the cooperative in such amounts and frequency as determined by the cooperative. Members of the cooperative will be responsible for administering the cooperative, including determining the amount of contributions, marketing expenditures and allocations. However, we may require that cooperative decisions be made based on approval of a simple majority of franchisee members based on one vote per Deck Medic Business located and a quorum of not less than 25% of the designated franchisee cooperative members. If a cooperative exceeds nine franchisee members, we may require that the cooperative establish formal governing documents. Each cooperative must prepare annual unaudited financial statements that must be provided to each cooperative member for review. We reserve the right to form, change, dissolve, or merge any advertising cooperative. If we elect to form a local or regional cooperative or if a cooperative already exists as to the area of your Deck Medic Business, you will be required to participate in the cooperative in accordance with the provisions of our operations manual which we may supplement and modify from time to time. (Franchise Agreement, Article 9.C.). You will not be required to make contributions to a Local or Regional Advertising Cooperative in amounts exceeding 5% of your monthly Gross Sales.
As of the Issuance Date of this Disclosure Document we have not established any local or regional advertising cooperatives but reserve the right to do so in the future;
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–29)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, if a local or regional advertising cooperative is established, the members of the cooperative are responsible for administering it. This includes determining the amount of contributions, marketing expenditures, and allocations.
Deck Medic retains the exclusive right to authorize, establish, designate, and de-authorize these cooperatives within designated markets. The franchisor also determines the geographic and other boundaries of each cooperative, considering factors like media markets (print, television, and digital). Franchisees are required to contribute to the cooperative in amounts and frequencies determined by the cooperative itself, but these contributions cannot exceed 5% of monthly Gross Sales.
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. If a cooperative exceeds nine franchisee members, Deck Medic may require the establishment of formal governing documents. Each cooperative must prepare annual unaudited financial statements for review by its members. Deck Medic 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.