Once a co-op funds, the timeline that was set during co-op design cannot be changed. These are the expectations set forth to your backers when your co-op went live. If anything arises that throws off your timeline it is best to update your backers immediately so as to maintain their confidence in your co-op competing in a timely manner.
You are contractually obligated to provide at least one monthly update if your Co-Op is not flagged and at least biweekly updates if your Co-Op is flagged. Buyers expect you to respond to their questions in a timely manner and provide regular updates. The more communication the better.
You only owe Kickfurther for the actual sales that you make, but your Co-Op may become flagged and subject to cancellation if your actual sales are less than your expected sales for any sales period.
Each co-op is on a linear timeline based on projected expected sales you set up during co-op design with your Account Executive. If sales fall below expectations, payments should come in at the expected payments put forth to your backers so the co-op stays on schedule (or, meeting expectations) for an on time completion.
In order to keep your co-op in compliance, all invoiced sales must be paid for. Failure to do so will result in escalation for breach of contract, as well as flagging your co-op for nonpayment of sales.
Payments can be made on the platform at any time by going to your invoices tab, “due now” and using the “make payment” feature.
You can adjust your upcoming payment by going to the “upcoming payment” tab and selecting a custom payment as shown below:
Late completion fees apply to any co-op that does not complete by their contracted completion date. Late completion fees will begin to accrue the day AFTER the contracted completion date. Late completion fees are outlined in section 1.4.2 of your contract. It is important to update your backers if you know you will not complete on time to maintain their confidence in the co-op completing in a timely manner.
There is a $500 fee applied for each occurrence of the following:
Late sales reporting
Late invoice payments
Failure to provide a monthly update to your backers (or twice monthly if in flagged status)
All late fees are assessed upon completion of the co-op.
Late submission of reporting
Lower than expected sales, lower than expected payments (based on the timeline you created when you designed the consignment),
Later than expected completion
What does Flagged Status mean?
Flagged status is a flag on the co-op that shows the co-op is off track for its linear completion and allows buyers to vote to cancel the co-op if they lose confidence in your company’s ability to successfully reach completion of the co-op.
If your Co-Op becomes flagged, the users that contributed can choose to vote to terminate the consignment via a No Confidence vote. When in flagged status, it also increases the businesses burden to provide updates to the community from monthly, to every 2 weeks. A co-op in flagged status makes a business ineligible to launch any new co-ops until the flagged status is resolved, and may also restrict the funding limit for the next co-op.
A co-op is subject to an Affirmative Vote upon meeting certain criteria. The Affirmative Vote acts in the same manner as the No Confidence vote that is triggered once a co-op becomes flagged. A co-op is eligible for an Affirmative Vote if they meet the following triggers:
In flagged status for more than 90 days
Has gone more than 30 days since its most recent payment (the payment must be at least 10% of the compliance/invoiced amount)
Past expected completion date
Kickfurther will send you a Termination notice. After this notice is sent within fifteen days you are obligated to do one of the following: Provide payment in full Return of the appropriate amount of funded inventory Provide a mixture of payment and return of funded inventory.