Who determines the governance and commencement date of a Desi District Market Cooperative?

According to Desi District's 2024 Franchise Disclosure Document, Desi District Franchise Group determines the governance (form and manner of organization) and commencement date of any Market Cooperative. Desi District may also require the Market Cooperative to adopt bylaws or regulations that they prepare. However, unless Desi District specifies otherwise, the activities carried on by each Market Cooperative are decided by a majority vote of its members. Desi District is entitled to attend and participate in any Market Cooperative meeting.

If the members of a Market Cooperative are unable to decide how to spend the Market Cooperative's funds, Desi District Franchise Group may assume decision-making authority after providing 10 days' notice to the members. The purpose of each Market Cooperative is to administer regional advertising and marketing programs and develop standardized promotional materials for use by members in local advertising and promotion, subject to Desi District's approval.

Desi District also has the right to enforce franchisees' obligations to contribute to the Market Cooperative. The majority vote of the Market Cooperative determines the dues to be paid by members, including franchisees, but the dues must be between 1% and 5% of gross sales. Desi District can also terminate any Market Cooperative. If a Market Cooperative is terminated, any remaining funds will be transferred back to the franchisees based on their contributions.