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 offer timeline), or failure to complete on time can all trigger troubled status under the terms of your consignment agreement. When your co-op is in troubled status, buyers are given the option to vote “no confidence” regarding their feelings of whether the co-op is likely to reach successful completion. If at any time more than 50% of the co-op’s ownership comes to a consensus that they are no longer confident the co-op will complete successfully, then the co-op is “Canceled by Vote”.
If a co-op has been in troubled status for more than 60 days, has passed its expected completion date, and has not made any payment within the last 30 days, Kickfurther will administer an “affirmative vote”. This vote requires that 50% of the co-ops ownership votes to affirm that the co-op should remain active. By doing this we ensure that user engagement remains consistent across non-performing coops, if the vote does not reach 50% within the specified timeframe, the co-op is “Canceled by Vote”.
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. Kickfurther very rarely cancels a co-op after community funding has been achieved. However if elements of fraud are detected, a critical supplier issue emerges, the final co-op details aren’t successfully completed by the business or there is another extenuating circumstance, Kickfurther reserves the right to cancel the co-op and refund the buyers for their contributions.
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 via email that it intends to cancel the co-op, pay buyers for any outstanding invoiced sales, pay Kickfurther the cancellation and restocking fees in the contract, 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, a notice of consignment termination 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. Additionally the business loses all access to the platform and is no longer able to communicate with the buyers going forward.
If the business is unable or unwilling to return the consigned inventory, and defaults on the obligation to return the merchandise purchased by the buyers, the entire remaining balance of the co-op is immediately due.
The business may within propose a settlement offer 15 days of being notified to satisfy the remaining balance due on the co-op.
Kickfurther will administer a buyer vote on the settlement, and (if accepted) manage a payback plan for the buyers. If buyers decline a proposed payback plan, the remaining balance and any guarantor will be sent on to a professional recovery agency, or Kickfurther may choose to litigate, or in some cases, file a criminal complaint.