How are the dues for Endless Summer Sweets Market Cooperative members determined?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
, all of which are subject to Franchisor's approval.
- (c) Approval. No advertising or promotional plans or materials may be used by a Market Cooperative or furnished to its members without the prior approval of Franchisor pursuant to Section 9.1 of this Agreement. Franchisor may designate the national or regional advertising agencies used by the Market Cooperative.
- (d) Funding. The majority vote of the Market Cooperative will determine the dues to be paid by members of the Market Cooperative, including Franchisee, but not less than 1% and not more than 5% of Gross Sales.
- (e) Enforcement. Only Franchisor will have the right to enforce the obligations of franchisees who are members of a Market Cooperative to contribute to the Market Cooperative.
- (f) Termination. Franchisor may terminate any Market Cooperative.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to Endless Summer Sweets' 2024 Franchise Disclosure Document, the dues for members of a Market Cooperative, including franchisees, are determined by a majority vote of the Market Cooperative. These dues must be between 1% and 5% of Gross Sales. However, the franchisor retains the right to enforce the obligation of franchisees to contribute to the Market Cooperative.
This means that as an Endless Summer Sweets franchisee, you will be required to participate in a Market Cooperative if one exists for your geographic area. You will have a vote in determining the dues, but ultimately, you will be obligated to pay between 1% and 5% of your Gross Sales as determined by the majority.
It is important to note that the franchisor has the right to terminate any Market Cooperative and that any funds left in a Market Cooperative upon termination will be transferred to the Marketing Fund. The franchisor also has the power to assume decision-making authority regarding how Market Cooperative monies will be spent if the members are unable to decide, doing so after providing 10 days' notice to the members.