How is the Clean Your Dirty Face Local Advertising Cooperative Contribution amount determined?
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.
The Local Advertising Cooperative Contributions will be accounted for separately by us from our other funds and will not be used to defray any of our general operating expenses. You agree to submit to us and the Local Advertising Cooperative any reports that we or the Local Advertising Cooperative require.
You understand and acknowledge that your Business might not benefit directly or in proportion to its Local Advertising Cooperative Contribution. Local Advertising Cooperatives will be developed separately and no Local Advertising Cooperative will be intended to benefit the others. We will have the right, but not the obligation, to use collection agents and to institute legal proceedings to collect a Local Advertising Cooperative Contributions on behalf of and at the expense of the Local Advertising Cooperative and to forgive, waive, settle and compromise all claims by or against the Local Advertising Cooperative. Except as expressly provided in this Section 9.E, we assume no direct or indirect liability or obligation to you with respect to the maintenance, direction or administration of the Local Advertising Cooperative.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, if a Local Advertising Cooperative is established in a franchisee's area, the franchisee is required to participate and contribute their share. The specific amount of the Local Advertising Cooperative Contribution is established, although the FDD does not state how it is established. The contribution is payable in the same manner as the Royalty fee and counts toward the franchisee's Local Advertising Expenditure requirement. The contribution may also be capped based on the by-laws adopted by the Local Advertising Cooperative, subject to Clean Your Dirty Face's approval.
Each Clean Your Dirty Face Facial Bar contributing to a Local Advertising Cooperative has one vote on matters involving the activities of the cooperative. The Local Advertising Cooperative cannot use any advertising, marketing, or promotional plans or materials without Clean Your Dirty Face's prior written consent. Subject to Clean Your Dirty Face's approval and the availability of funds, the Local Advertising Cooperative has discretion over the creative concepts, materials, and endorsements it uses. Clean Your Dirty Face agrees to assist in formulating marketing plans and programs, which will be implemented under the direction of the Local Advertising Cooperative.
The Local Advertising Cooperative Contributions will be accounted for separately from Clean Your Dirty Face's other funds and will not be used to defray any of their general operating expenses. Franchisees must submit any reports required by Clean Your Dirty Face or the Local Advertising Cooperative. Franchisees acknowledge that their business might not benefit directly or in proportion to its Local Advertising Cooperative Contribution, as Local Advertising Cooperatives are developed separately and are not intended to benefit each other. Clean Your Dirty Face has the right, but not the obligation, to use collection agents and institute legal proceedings to collect Local Advertising Cooperative Contributions on behalf of and at the expense of the Local Advertising Cooperative and to forgive, waive, settle, and compromise all claims by or against the Local Advertising Cooperative. Clean Your Dirty Face assumes no direct or indirect liability or obligation to franchisees with respect to the maintenance, direction, or administration of the Local Advertising Cooperative, except as expressly provided.