CARITO COMMUNITY SHOP FAILURE AND EXIT PLAN v1.0
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Document: Carrito_Community_Shop_Failure_and_Exit_Plan.txt
Status: Risk, Closure, and Transition Framework
Applies To: Community-owned Carrito shops, organizers, and contributors

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PURPOSE
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This document defines how a Carrito Community-Owned Shop
handles failure, closure, or transition.

It exists to preserve trust, reduce conflict,
and ensure responsible handling of shared assets.

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CORE PRINCIPLE
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Planning for failure protects everyone.

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WHAT COUNTS AS FAILURE OR EXIT
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An exit scenario may include:
- Inability to cover operating costs
- Loss of leadership or volunteers
- Sustained inactivity
- Strategic decision to close or merge

Failure does not imply wrongdoing.

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EARLY WARNING SIGNS
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Shops should watch for:
- Repeated missed expenses
- Tool neglect
- Declining participation
- Governance breakdown

Early intervention is encouraged.

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DECISION TO CLOSE
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Closure should be:
- Proposed by leadership or governing body
- Documented
- Approved by vote according to governance rules

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ASSET HANDLING
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Upon closure:
- Tools and equipment should be inventoried
- Outstanding obligations addressed
- Assets redistributed or sold according to ownership structure

Preferred outcomes:
- Transfer to another community shop
- Sale to recover funds
- Donation to educational programs

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FINANCIAL WRAP-UP
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Final accounting should:
- Pay outstanding expenses
- Settle wages or agreed compensation
- Close accounts transparently

No profit distributions are guaranteed at closure.

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PROFIT SHARE TERMINATION
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Profit share arrangements:
- End upon closure
- Do not convert to claims on assets
- Do not guarantee payout

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DOCUMENTATION AND RECORDS
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Records should be:
- Archived
- Made available to contributors
- Preserved for a reasonable period

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COMMUNICATION
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Closure should be communicated:
- Clearly
- Honestly
- Without blame

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RELATIONSHIP TO THE CARITO PLATFORM
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The Carrito platform:
- Does not assume liability
- Does not own community shop assets
- May update directories accordingly

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SUMMARY
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A clean exit preserves trust.

Even a shop that closes
can leave the community stronger.

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END OF FAILURE AND EXIT PLAN
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