Who votes to increase the Kidokinetics Local Marketing Requirement within a cooperative?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Cooperative contributions will not exceed the Local Marketing Requirement unless a majority of the Cooperative votes to increase that requirement. The following provisions will apply to each Cooperative:
- 12.3.1. Each Cooperative will be organized and governed in a form and manner, and will commence operation on a date, approved in advance by Franchisor;
- 12.3.2. Each Cooperative will be organized for the exclusive purpose of administering regional advertising programs and developing, subject to Franchisor's approval, standardized advertising materials for use by the members in local advertising;
- 12.3.3. No promotional or advertising plans or materials may be used by a Cooperative or furnished to its members without Franchisor's prior approval. All such plans and materials must be submitted to Franchisor for prior review and approval;
- 12.3.4. The Cooperative's activities will be agreed upon by a majority vote of the member franchisees in the Cooperative. All Cooperative contributions will be credited against the Local Marketing Requirement. The Cooperative may, by the majority vote of its members, require a Cooperative contribution in excess of the Local Marketing requirement;
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, if a regional advertising and promotional cooperative is established, a majority vote of the member franchisees in the Cooperative is required to increase the Cooperative contribution beyond the Local Marketing Requirement. The Kidokinetics franchisee must participate in the Cooperative if one is established. The activities of the Cooperative are determined by a majority vote of the member franchisees within it.
This means that Kidokinetics franchisees have a direct say in how marketing funds are spent within their region. However, franchisees are obligated to participate in the Cooperative if Kidokinetics establishes one for their geographical area. Franchisees need to factor in the potential for increased marketing contributions decided by the cooperative members when assessing their financial obligations.
It's important to note that all advertising plans and materials developed by the Cooperative are subject to Kidokinetics's approval. This ensures that the marketing efforts align with the overall brand standards and strategy of Kidokinetics. While franchisees have a voice in the Cooperative's activities, Kidokinetics retains ultimate control over the advertising and promotional content used.