Who can review the annual financial statements of a Desi District advertising cooperative?

According to Desi District's 2024 Franchise Disclosure Document, the annual financial statements of a local or regional advertising cooperative are available for review by Desi District and the members of the cooperative. 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. Each franchisee gets one vote per outlet unless they are in default of their franchise agreement.

The amount a franchisee must contribute to the cooperative is determined by the members' vote, with a range of 1% to 5% of gross sales. If Desi District's own outlets are members, 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.

Desi District also has the power to require the cooperatives to be formed, changed, dissolved, or merged. This setup gives Desi District significant control over the advertising efforts and finances of the cooperative, while also allowing franchisees to have a say in how their advertising contributions are spent, provided they are members of the cooperative.