Who determines the dues to be paid by members of a Desi District Market Cooperative?

According to Desi District's 2024 Franchise Disclosure Document, the majority vote of the Market Cooperative determines the dues to be paid by its members, including franchisees. These dues will be used for regional advertising and marketing programs.

The dues are set within a specific range: not less than 1% and not more than 5% of Gross Sales. This provides a framework, ensuring that contributions are substantial enough to fund cooperative activities while remaining manageable for franchisees.

However, Desi District Franchise Group retains significant oversight. All advertising and promotional plans require their prior approval, and they can designate the advertising agencies used by the Market Cooperative. Furthermore, Desi District Franchise Group has the right to enforce the obligations of franchisees to contribute to the Market Cooperative and can terminate any Market Cooperative. If the members of a Market Cooperative are unable or fail to determine the manner in which Market Cooperative monies will be spent, Desi District Franchise Group may assume this decision-making authority after 10 days' notice to the members of the Market Cooperative.