How many votes does each Desi District franchisee have in a local or regional advertising cooperative?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
Local or Regional Advertising Cooperatives. We do not currently have any local or regional advertising cooperatives. We have the right to require you to participate in a local or regional advertising cooperative. We will define the area of the cooperative based on media markets, or other geographic criteria that we deem appropriate. Each franchisee in the area would have one vote per outlet (unless the franchisee is in default under its franchise agreement). The amount you must contribute to the cooperative will be determined by vote of the members, but not less than 1% and not more than 5% of gross sales. If our own outlets are members of a cooperative,
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 31–38)
What This Means (2024 FDD)
According to the 2024 Desi District FDD, each franchisee has one vote per outlet in a local or regional advertising cooperative, provided they are not in default under their franchise agreement. Desi District has the right to require franchisees to participate in these cooperatives, defining the cooperative's area based on media markets or other geographic criteria. The amount a franchisee must contribute is determined by a vote of the members, set between 1% and 5% of gross sales.
If Desi District's own outlets are members of a cooperative, they contribute and vote on the same basis as franchisees. Desi District administers the cooperative but can delegate this responsibility to an outside company or the franchisee members. The cooperative may operate from written bylaws or other governing documents determined by Desi District.
Cooperatives will prepare annual financial statements accessible to Desi District and its members. Desi District retains the power to form, change, dissolve, or merge cooperatives. Prospective franchisees should note that the specific governing documents for these cooperatives are not currently available for review, which could impact their operational control and financial obligations within the cooperative.