What voting provisions can Mrcool establish for decisions made by the Advertising Cooperative?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Franchisor may establish foundational and organizational requirements of the Advertising Cooperative including voting provisions that allows the Advertising Cooperative to make decisions based on the simple majority vote (one vote per franchisee Center located within the designated area of the Advertising Cooperative) with a quorum constituting 25% of those franchisees within the Advertising Cooperative;
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, Mrcool has the authority to establish the foundational and organizational requirements for the Advertising Cooperative. This includes setting the voting provisions.
Specifically, Mrcool can implement voting provisions that allow the Advertising Cooperative to make decisions based on a simple majority vote. Each Mrcool Center franchise located within the designated area of the Advertising Cooperative gets one vote.
For the Advertising Cooperative to conduct business, a quorum must be present. Mrcool stipulates that a quorum consists of 25% of the franchisees within the Advertising Cooperative. This ensures that a sufficient number of franchisees participate in the decision-making process.
This structure gives Mrcool significant control over the advertising strategies and marketing efforts within the cooperative, while also ensuring that franchisees have a voice in the decisions that affect their businesses. Franchisees should be aware of these voting provisions and participation requirements as they consider joining the Mrcool franchise system.