Who determines how each Devon Creek cooperative will be organized and governed?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
Currently, our System has no regional advertising fund or cooperative. However, we may decide to establish a regional fund or cooperative in the future and your participation may be mandatory, in our sole discretion. A regional cooperative will be comprised of all franchised Devon Creek franchise outlets in a designated geographic area. Our affiliate-owned outlets may participate in a regional cooperative, in our sole discretion. Each Devon Creek franchise outlet will have one vote in the cooperative. We will determine in advance how each cooperative will be organized and governed. We have the right to form, dissolve, merge or change the structure of the cooperatives. If a cooperative is established during the term of your Franchise Agreement, you must sign all documents we request and become a member of the cooperative according to the terms of the documents. Currently, there are no governing documents available for your review.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–32)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, Devon Creek determines how each cooperative will be organized and governed. A regional cooperative will consist of all franchised Devon Creek outlets within a specific geographic area, and affiliate-owned outlets may participate at Devon Creek's discretion. Each franchise outlet gets one vote in the cooperative. Devon Creek also retains the right to form, dissolve, merge, or change the structure of these cooperatives.
If a cooperative is established during the term of the Franchise Agreement, franchisees must sign all required documents and become a member according to the document's terms. Currently, there are no governing documents available for review.
This means that as a Devon Creek franchisee, you may be required to join a regional cooperative if one is established in your area. However, Devon Creek maintains control over the cooperative's structure and governance. Prospective franchisees should inquire about the conditions under which cooperatives may be formed and how they might impact their business operations.