How often are Desi District Market Cooperative Contributions due?
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, Market Cooperative Contributions are due weekly, on Tuesday. Currently, the amount is determined by the cooperative, and is currently set to none. Desi District retains the right to establish local or regional advertising cooperatives.
The maximum contribution that a cooperative may require is 5% of gross sales. Any location owned by Desi District or its affiliates 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 the cooperative can set the contribution amount, Desi District's corporate-owned locations could influence the decision, potentially impacting the financial burden on franchisees. Franchisees should inquire about the structure and voting procedures of these cooperatives to understand how decisions regarding contributions are made and how their interests will be represented.