What is the minimum quorum required for cooperative decisions in an Mrcool local or regional advertising cooperative?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 9: Local and Regional Advertising Cooperatives – If two or more Centers are operating within a geographic area, region, or market designated by us (a "Designated Market"), we reserve the right to establish and require your participation in a local or regional advertising cooperative within the Designated Market. If a local or regional advertising cooperative is established within a Designated Market that includes your Center(s), you will be required to participate in the cooperative and make on-going payments to the cooperative in such amounts and subject to such caps as established by the cooperative members. We anticipate that each Center franchisee will have one vote for each Center located within the cooperative market and that cooperative decisions shall be made based on approval of a simple majority vote with a quorum of not less than 25% of the designated cooperative members. Contributions to a local or regional cooperative that we designate will count toward satisfaction of your minimum local marketing requirements, if required. Contributions to a local or regional cooperative that we designate shall count toward the satisfaction of your local marketing obligations and shall not exceed local marketing requirements.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, if Mrcool establishes a local or regional advertising cooperative within a designated market that includes a franchisee's center, participation is mandatory. Each Mrcool franchisee will have one vote for each center they operate within the cooperative market. Decisions within the cooperative are made based on a simple majority vote.
The FDD specifies that a quorum of not less than 25% of the designated cooperative members is required for these decisions. This means that at least 25% of the franchisees in the cooperative must be present or accounted for in order for a vote to be valid.
Contributions to the local or regional cooperative, if designated by Mrcool, will count toward satisfying the franchisee's minimum local marketing requirements. These contributions will not exceed the local marketing requirements, providing a structured framework for advertising and marketing efforts within the designated market.