What voting provisions can Deer Solution's Franchisor establish for the Advertising Cooperative?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 Deer Solution Business located within the designated area of the Advertising Cooperative) with a quorum constituting 25% of those franchisees within 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 right to establish the foundational and organizational requirements of the Advertising Cooperative, including voting provisions. The franchisor can allow the Advertising Cooperative to make decisions based on a simple majority vote, with one vote per franchisee Deer Solution Business located within the designated area of the Advertising Cooperative.
A quorum is required for the Advertising Cooperative to make decisions, which is set at 25% of the franchisees within the Advertising Cooperative. This means that at least 25% of the franchisees in the cooperative must be present for a vote to be valid.
This structure gives Deer Solution significant control over the advertising efforts, while also allowing franchisees to have a voice through majority voting. However, the franchisor's ability to set the foundational requirements means they can influence the decision-making process. Prospective franchisees should consider how this structure might affect their ability to influence advertising strategies in their region.