Can Clean Your Dirty Face change or dissolve Local Advertising Cooperatives?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
ng Fund. If we terminate the Marketing Fund, we will continue to spend all unspent monies in accordance with this Section, until such amounts are exhausted.
9.E. LOCAL ADVERTISING COOPERATIVE.
You agree that we or our affiliates or designees may establish or direct the establishment of a local advertising cooperative ("Local Advertising Cooperative") in geographical areas (as determined by us) in which two (2) or more CYDF Facial Bars are operating. The Local Advertising Cooperative will be organized and governed by written documents in a form and manner, and begin operating on a date, that we determine in advance. Such written documents will be available for participating franchise owners to review. We may change, dissolve, merge and reinstate any Local Advertising Cooperatives. Each Local Advertising Cooperative's purpose is, with our approval, to administer advertising programs and develop advertising, marketing and promotional materials for the area that the Local Advertising Cooperative covers.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, Clean Your Dirty Face has the authority to modify or terminate Local Advertising Cooperatives. Specifically, Clean Your Dirty Face or its affiliates can establish Local Advertising Cooperatives in geographical areas with two or more Clean Your Dirty Face Facial Bars. These cooperatives are governed by written documents determined by Clean Your Dirty Face.
Clean Your Dirty Face retains the right to alter, dissolve, merge, and reinstate any Local Advertising Cooperatives. The purpose of these cooperatives is to manage advertising programs and develop marketing materials for their respective areas, subject to Clean Your Dirty Face's approval. Franchisees are required to sign documents to become members and participate in the Local Advertising Cooperative if one is established in their area.
This level of control allows Clean Your Dirty Face to adjust advertising strategies and structures as needed, potentially impacting how and where advertising funds are spent. While franchisees have a vote on the activities of their local cooperative, Clean Your Dirty Face's overarching authority means that significant changes can be imposed, affecting the franchisee's local advertising efforts and potentially requiring them to adapt to new marketing approaches.