How many votes will each Devon Creek franchise outlet have in a regional cooperative?
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 FDD, each franchise outlet will have one vote in a regional cooperative, should one be established. Devon Creek may decide to establish a regional advertising fund or cooperative in the future, though there are none currently. If a regional cooperative is created, participation may be mandatory at Devon Creek's discretion.
The regional cooperative would be comprised of all franchised Devon Creek outlets within a specific geographic area, and Devon Creek's affiliate-owned outlets may participate as well. Devon Creek will determine the organization and governance of each cooperative in advance and has the right to form, dissolve, merge, or change the structure of the 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 terms of those documents. Currently, there are no governing documents available for review. This means a prospective franchisee cannot evaluate the specific rules and obligations of a regional cooperative in advance, as the terms are not yet defined.