What foundational and organizational requirements can Deer Solution's Franchisor establish for the Advertising Cooperative?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
and/or customer referral sources outside of Franchisee's Operating Territory, unless: (a) such Media Distribution is a joint distribution with other Deer Solution Businesses pursuant to an Advertising Cooperative authorized by Franchisor in writing; and (b) Franchisor, in Franchisor's Reasonable Business Judgment, otherwise agrees to same in writing.
9.G. 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 Deer Solution Business franchises are located as a region for the purpose of establishing an Advertising Cooperative. If Franchisee's Deer Solution Business or Operating Territory is located within the geographic area of an Advertising Cooperative, franchisee must participate in and contribute to the Advertising Cooperative.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the franchisor has the authority to establish foundational and organizational requirements for the Advertising Cooperative. This includes setting voting provisions that allow the cooperative to make decisions based on a simple majority vote, with one vote per Deer Solution Business franchisee located within the designated area. A quorum is established when 25% of the franchisees within the Advertising Cooperative participate in voting.
Deer Solution's franchisor also has the right to designate any geographic area with two or more franchises as a region for establishing an Advertising Cooperative. If a franchisee's business or operating territory falls within the area of an Advertising Cooperative, they are obligated to participate and contribute financially as determined by the cooperative.
These stipulations ensure that Deer Solution maintains control over the advertising and marketing efforts within its franchise system, while also allowing for local and regional collaboration among franchisees. Franchisees must adhere to the franchisor's guidelines and contribute to the Advertising Cooperative if their location falls within a designated area, giving the franchisor significant influence over the cooperative's operations and marketing strategies.