Sometimes after you’ve been funded by our community, your Co-Op doesn't go as planned. Late submissions of sales reporting, failure to make invoiced payments, making payments that are lower than expected (based on your estimated Co-Op timeline), or failure to complete the Co-Op on estimated timeline can all trigger a Co-Op to be flagged under the terms of your consignment agreement. When your Co-Op is flagged, Buyers are given the option to vote to terminate the Co-Op via Affirmative Vote if they believe it is unlikely to reach successful completion. If, at any time, more than 50% of the Co-Op’s ownership comes votes to terminate the consignment, then the Co-Op is “Canceled by Vote”.
If a Co-Op has been flagged for more than 60 days, has passed its expected completion date, and has not made any payment within the last 30 days, Kickfurther may administer an “affirmative vote”. An Affirmative Vote will be initiated by email. Users will either vote to terminate the consignment or continue it.
Affirmative votes will require the participation of Buyers owning more than 50% of the Co-Op to be determined to be valid and to result in a potential cancelation of the Co-Op, where applicable.
At the expiration of the affirmative vote, Kickfurther will review the results and if the majority ownership of the Co-Op has voted to terminate the Co-Op, it will be terminated. If the majority ownership votes to continue the Co-Op, the Co-Op will continue. By doing this we ensure that user engagement remains consistent across Co-Ops that are taking longer than expected to complete.
If the Co-Op is canceled by Kickfurther, it typically happens prior to funding. If our sales team is able to determine that a Co-Op will not fund, the Co-Op is marked “Canceled - Would not fund” and all contributions are refunded to the Buyers.
Although a rare occurrence, a Business also has the contractual right to cancel its own Co-Op. This is a process which must be facilitated by Kickfurther. The business must notify Kickfurther, in writing, that it intends to cancel the Co-Op. Upon such cancellation (unless Buyers accept another option), a cancelling business is required to pay Buyers for any outstanding invoiced sales, pay Kickfurther the cancellation and restocking fees in the Consignment Agreement, and work with Kickfurther to return the inventory funded in the Co-Op in sufficient quantity to complete the obligation.
Post-Cancellation Process and Timeline
Upon cancellation of the consignment, a termination notice is sent to the business via email. This notice formally informs the business that the Co-Op has been terminated. The business has 15 days from the time of cancellation to return the remaining consigned inventory in sufficient quantities to complete the Co-Op, provide payment in full, or propose another option to Buyers.
If the business wishes to offer a plan in lieu of providing the inventory or payment in full, Kickfurther will administer a Buyer vote on the plan, and, if accepted, manage the plan for the Buyers. If Buyers decline a proposed plan, the remaining balance will be sent on to a professional collections agency. To the extent that a guarantor is included on the Co-Op, the agency will pursue both the guarantor and the business.