What voting provisions are allowed for the Deck Medic Advertising Cooperative?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
sor'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;
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the franchisor has the right to authorize, establish, designate, and de-authorize local or regional advertising cooperatives. If a franchisee's Deck Medic business is located within the geographic area of an Advertising Cooperative, they must participate in and contribute to it.
The voting provisions allow the Advertising Cooperative to make decisions based on a simple majority vote, with one vote per franchisee Deck Medic Business located within the designated area. A quorum requires 25% of the franchisees within the Advertising Cooperative to be present.
These cooperatives are organized to administer marketing programs and develop media, all subject to the franchisor's review and approval. Franchisees must participate fully and execute all required documents to become members of the Advertising Cooperative. Contributions to the Advertising Cooperative are determined and required by the cooperative, but cannot exceed the franchisee's local minimum marketing obligations. All marketing plans must receive prior written approval from Deck Medic.