Who approves the by-laws adopted by the Clean Your Dirty Face Local Advertising Cooperative?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
If we establish a Local Advertising Cooperative in your geographic area pursuant to this Section 9.E, you agree to participate and contribute your share to such Local Advertising Cooperative ("Local Advertising Cooperative Contribution"). The amount of your Local Advertising Cooperative is established. Your Local Advertising Cooperative Contribution will be payable in the same manner as the Royalty, and will count toward your Local Advertising Expenditure requirement. Your Local Advertising Cooperative Contribution may also be capped based on the provisions of the by-laws adopted by the Local Advertising Cooperative, subject to our approval.
Each CYDF Facial Bar contributing to a Local Advertising Cooperative will have one (1) vote on matters involving the activities of the particular Local Advertising Cooperative. The Local Advertising Cooperative may not use any advertising, marketing or promotional plans or materials without our prior written consent. However, you acknowledge and agree that, subject to our approval and subject to availability of funds, the Local Advertising Cooperative will have discretion over the creative concepts, materials and endorsements used by it. We agree to assist in the formulation of marketing plans and programs, which will be implemented under the direction of the Local Advertising Cooperative. You agree that the Local Advertising Cooperative Contributions may be used to pay the costs of preparing and producing video, audio and written advertising and direct sales materials; purchasing direct mail and other media advertising; implementing direct sales programs; and employing marketing, advertising and public relations firms to assist with the development and administration of marketing programs.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face FDD, the by-laws adopted by the Local Advertising Cooperative are subject to the franchisor's approval. The Local Advertising Cooperative is established by Clean Your Dirty Face in geographic areas with two or more CYDF Facial Bars operating.
The purpose of the Local Advertising Cooperative is to administer advertising programs and develop advertising, marketing, and promotional materials for the area it covers, with Clean Your Dirty Face's approval. Each CYDF Facial Bar contributing to a Local Advertising Cooperative has one vote on matters involving the activities of the cooperative.
This means that while franchisees have a say in the cooperative's activities through their vote, Clean Your Dirty Face retains ultimate control over the cooperative's operations by approving the by-laws and any advertising, marketing, or promotional plans. Prospective franchisees should consider that their local advertising strategies must align with the franchisor's overall vision and standards.