What is the minimum quorum required for decision-making in a Deer Solution Advertising Cooperative?

According to Deer Solution's 2025 Franchise Disclosure Document, a quorum for the Advertising Cooperative is 25% of the franchisees within the cooperative. Decisions are made based on a simple majority vote, with each franchisee Deer Solution Business having one vote within the designated area of the Advertising Cooperative.

This means that for any vote to be valid within the Deer Solution Advertising Cooperative, at least 25% of the franchisees in that cooperative must be present or accounted for. If the quorum is met, a simple majority of those voting will carry the decision. This structure ensures that a significant portion of the franchisees must participate for decisions to be legitimate, preventing a small minority from dictating advertising strategies.

It is important to note that the franchisor, Deer Solution, has the right to authorize, establish, designate, and de-authorize these advertising cooperatives. The franchisor also sets the foundational and organizational requirements, including the voting provisions. Franchisees are obligated to participate and contribute financially to the Advertising Cooperative if their business or operating territory falls within the designated area. This contribution counts towards the franchisee's minimum local marketing obligations as outlined in the agreement.

Prospective franchisees should be aware that Deer Solution businesses owned by the franchisor or its affiliates within the cooperative's geographic area are not required to contribute to the Advertising Cooperative. All marketing programs and media developed by the cooperative are subject to the franchisor's review and approval, ensuring brand consistency and adherence to the franchisor's standards.