How often is the Market Cooperative Contribution due for a Desi District franchise?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Market Cooperative Contribution | As determined by co-op. Currently, none. | Weekly, on Tuesday | We have the right to establish local or regional advertising cooperatives. The maximum contribution that a co-op may require is 5% of gross sales. Any location owned by us or any affiliate will have the same voting rights as our franchisees. Dues will be imposed by a majority vote and will not be less than 1% of gross sales. If any location owned by us or any affiliates have a majority vote, the maximum fees imposed will not exceed 3% of gross sales. |
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the Market Cooperative Contribution is due weekly, on Tuesday. Currently, the amount is determined by the cooperative, but is currently set at none. Desi District has the right to establish local or regional advertising cooperatives.
The maximum contribution that a co-op may require is 5% of gross sales. Any location owned by Desi District or any affiliate will have the same voting rights as franchisees. Dues will be imposed by a majority vote and will not be less than 1% of gross sales.
If any location owned by Desi District or its affiliates has a majority vote, the maximum fees imposed will not exceed 3% of gross sales. This means that while franchisees have a say in the cooperative's decisions, Desi District retains significant control over the financial obligations, especially if they or their affiliates hold a majority vote.