conditional

Under what conditions is a Deck Medic franchisee required to participate in an Advertising Cooperative?

Deck_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

g in relation to the sale of Deck Medic Business franchises; and

  • (5) Franchisee grants to Franchisor the right to use of Franchisee's financial data and information related to the financial performance of the Franchised Business for reporting purposes within Franchisor's publicly issued and published Franchise Disclosure Document, including in relation to the sale of franchises.

9.C. ADVERTISING COOPERATIVE

At all times Franchisor, in Franchisor's Reasonable Business Judgment, possesses the right to authorize, establish, designate and de-authorize a local or regional advertising cooperative within those markets that Franchisor designates (the "Advertising Cooperative"). Franchisee agrees that Franchisor possesses the sole and exclusive right to designate any geographic area in which two or more Deck Medic Business franchises

are located as a region for the purpose of establishing an Advertising Cooperative. If Franchisee's Deck Medic Business or Operating Territory is located within the geographic area of an Advertising Cooperative, franchisee must participate in and contribute to the Advertising Cooperative. Franchisee agrees to the following:

  • (1) If Franchisor previously instituted or, in the future, institutes an Advertising Cooperative that includes, in whole or in part, Franchisee's Operating Territory or Franchisee's Deck Medic Business Location, Franchisee shall participate in and make such on-going financial contributions to the Advertising Cooperative, as determined by the Advertising Cooperative;
  • (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;
  • (3) Unless otherwise authorized and approved by Franchisor in writing, each Advertising Cooperative shall be organized for the exclusive purpose of administering marketing programs and the development of media (all subject to the review and approval of Franchisor) for use by members of the Advertising Cooperative in local or regional marketing;
  • (4) If at the time of execution of this Agreement an Advertising Cooperative has been established for a geographic area that includes, in whole or in part, Franchisee's Deck Medic Business location or Operating Territory, or if such Advertising Cooperative is established during the Term of this Agreement, Franchisee shall fully participate in the Advertising Cooperative and Franchisee shall execute, at the request of Franchisor, all documents required by Franchisor and Franchisee shall become a member of the Advertising Cooperative subject to the terms of those documents;
  • (5) Franchisee shall contribute to the Advertising Cooperative in the amounts as determined and required by the Advertising Cooperative or, otherwise in accordance with those documents governing the operation of the Advertising Cooperative; provided, however, Franchisee's contributions to the Advertising Cooperative shall not exceed Franchisee's local minimum marketing obligations set forth in Article 9.B. of this Agreement and Franchisee's contributions to the Advertising Cooperative shall count toward satisfaction of Franchisee's minimum local marketing obligations set forth in Article 9.B.;

Source: Item 23 — RECEIPTS (FDD pages 43–228)

What This Means (2024 FDD)

According to Deck Medic's 2024 Franchise Disclosure Document, a franchisee is required to participate in an Advertising Cooperative if their Deck Medic Business or Operating Territory is located within the geographic area designated for that cooperative. Deck Medic retains the sole right to designate any geographic area with two or more Deck Medic Business franchises as a region for establishing an Advertising Cooperative.

If an Advertising Cooperative is instituted that includes the franchisee's Operating Territory or Deck Medic Business location, the franchisee must participate and make ongoing financial contributions as determined by the cooperative. Deck Medic may establish foundational and organizational requirements for the Advertising Cooperative, including voting provisions allowing decisions based on a simple majority vote (one vote per franchisee Deck Medic Business) with a quorum of 25% of franchisees within the cooperative.

Each Advertising Cooperative is organized to administer marketing programs and develop media for its members' local or regional marketing, subject to Deck Medic's review and approval. If an Advertising Cooperative exists at the time of the Franchise Agreement or is established during the agreement's term, the franchisee must fully participate and execute all required documents to become a member. Franchisees must contribute to the Advertising Cooperative as determined by the cooperative, but these contributions count toward the franchisee's minimum local marketing obligations and cannot exceed them. Deck Medic Businesses owned by Deck Medic or its affiliates within the cooperative's geographic area are not required to contribute.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.