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Jim Coen's picture

Co-op vs Independent Franchisee Association

A Co-op is a buying group that has strict IRS guidelines. Any "profit" that the Co-op realizes is returned to the members in the form of a rebate check and is subject to tax just like any other 1099.

An Independent Franchisee Association is a group of franchisees dedicated to working together to increase brand value for all stakeholders.

There are also hybreds.

For instance Dunkin' Donuts has a Co-op owned by the franchisees that supplies each shop will all product, 100% of the franchisees are members of the co-op.

They also have a DDIFO which is an independent franchisee associaition where only about 30% of the franchisees are members

Meineke has a hybred called the Meineke Dealers Association they act as a buying group and a franchisee asssociation I don't think they are technically a Co-op, but definately a franchisee asociation.

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