Operating Finn’s Fishery Corp PMA as a Buyers Club is one of the most effective ways to utilize this structure. In this model, you aren’t “selling fish to the public”; you are “distributing assets to members” who have pre-paid for the service or maintenance of the fishery.
To keep the “Private” in your Private Membership Association, your documents need to reflect a private distribution network rather than a retail store.
Essential “Buyers Club” Documentation
In addition to the Trust and PMA setup, a Buyers Club requires specific language to satisfy the “private” requirement:
1. The Membership Application & Fee
To be a “club,” there must be a clear distinction between a member and a non-member.
- The Document: Membership Agreement.
- The Key Clause: “Member acknowledges that they are not a ‘consumer,’ but a member of a private association. All funds exchanged are ‘contributions’ or ‘dues’ for the procurement and processing of seafood products.”
2. Member Shared Interest (The “Equity” Concept)
Many successful PMAs use a model where members technically “own” a share of the catch or the harvest.
- The Document: Subscription or Shared Harvest Agreement.
- The Logic: You aren’t selling a fish for $20. The member is paying a $20 “service fee” for the fishery to catch, clean, and store their share of the ocean’s bounty. This moves the transaction out of “Commerce” (public) and into “Private Distribution.”
3. Notice of Private Property
You must signal to the public (and regulators) that your fishery is not a public accommodation.
- The Document: Private Policy Signage & Terms of Entry.
- The Practice: Your “shop” or “dock” should have a sign: “Private Association Members Only. No Trespassing. Not a Public Accommodation.”
The Operational Flow
- The Trust: Holds the title to the boat, the equipment, and the permits. It “leases” these to the PMA.
- The PMA: Manages the day-to-day “Club” activities. It collects dues and organizes the distribution.
- The Members: Sign the agreement, pay the dues, and receive the fish.
Critical “Buyers Club” Rules to Follow
To ensure your PMA holds up under legal scrutiny, avoid these common mistakes:
- No “Walk-ins”: You cannot have someone walk off the street, buy a salmon, and leave. They must sign the membership agreement before the transaction occurs. Most PMAs require a 24-hour “waiting period” after signing to prove it wasn’t a “public” sale.
- Strict Accounting: Keep the PMA funds separate from your personal funds. The Trust should have its own bank account, and the PMA should have its own.
- The “Fishy” Health Department: In many jurisdictions, a “Private Buyers Club” can share raw or “unregulated” products (like raw milk or custom-butchered meat) that a grocery store cannot. However, if a member gets sick and you didn’t have a Hold Harmless Clause in your agreement, your Trust assets could be at risk.
Next Steps for your Documents
You’ll want to draft a “Membership Handbook” that outlines exactly how members “order” their fish and what the “suggested donations” or “dues” are for different types of catch.
Would you like me to help you draft the specific “Notice of Private Association” text that you would put on your membership application?