What terms and conditions might Endless Summer Sweets determine for franchisee participation in a purchasing cooperative?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.4 Market Cooperatives. Franchisor may establish market advertising and promotional cooperative funds ("Market Cooperative") in any geographical areas.
If a Market Cooperative for the geographic area encompassing the Location has been established at the time Franchisee commences operations hereunder, Franchisee shall immediately become a member of such Market Cooperative.
If a Market Cooperative for the geographic area encompassing the Location is established during the term of this Agreement, Franchisee shall become a member of such Market
Cooperative within thirty (30) days. Franchisor shall not require Franchisee to be a member of more than one Market Cooperative. If Franchisor establishes a Market Cooperative:
- (a) Governance.
Each Market Cooperative will be organized and governed in a form and manner and shall commence operations on a date determined by Franchisor.
Franchisor may require the Market Cooperative to adopt bylaws or regulations prepared by Franchisor.
Unless otherwise specified by Franchisor, the activities carried on by each Market Cooperative shall be decided by a majority vote of its members.
Franchisor will be entitled to attend and participate in any meeting of a 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 franchisor may establish market advertising and promotional cooperative funds, referred to as "Market Cooperative," in specific geographical areas. If a Market Cooperative exists for the franchisee's location when they start operating, the franchisee must immediately join. If a Market Cooperative is created later, the franchisee has thirty days to become a member. Endless Summer Sweets will not require a franchisee to be part of more than one Market Cooperative.
Endless Summer Sweets determines the organization, governance, and start date of each Market Cooperative. The franchisor can also mandate that the Market Cooperative adopt bylaws or regulations they prepare. Unless Endless Summer Sweets specifies otherwise, the activities of the Market Cooperative are decided by a majority vote of its members.
Endless Summer Sweets retains the right to attend and participate in any Market Cooperative meeting. This enables them to stay informed and potentially influence the cooperative's decisions. Prospective franchisees should inquire about the structure, decision-making processes, and potential costs associated with participating in a Market Cooperative to fully understand their obligations and the potential benefits.