Can Fly To Fit require the advertising cooperative to operate from written bylaws?

According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit has the right to require any local or regional advertising cooperative to operate from written bylaws or other governing documents that Fly To Fit determines. These documents are not currently available for review by prospective franchisees.

Fly To Fit may delegate the administration of the cooperative to an outside company or to the franchisee members. The cooperative will prepare annual financial statements, but these will only be available for review by Fly To Fit and the members of the cooperative. Fly To Fit also retains the power to require cooperatives to be formed, changed, dissolved, or merged.

Fly To Fit determines the area of the cooperative based on media markets or other geographic criteria. Each franchisee in the area has one vote per outlet, unless they are in default under their franchise agreement. The amount franchisees must contribute to the cooperative is determined by a vote of the members, but it must be between 1% and 5% of gross sales. If Fly To Fit's own outlets are members of a cooperative, they must contribute on the same basis as franchisees and vote on the same basis as other members.