Can the Clean Your Dirty Face Local Advertising Cooperative Contribution be capped?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
ring this Agreement's term, you agree to sign the documents we require to become a member of the Local Advertising Cooperative and to participate in the Local Advertising Cooperative as we require.
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.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the Local Advertising Cooperative Contribution can be capped. If Clean Your Dirty Face establishes a Local Advertising Cooperative in a franchisee's geographic area, the franchisee is required to participate and contribute their share. The amount of this contribution is established, and it counts toward the franchisee's Local Advertising Expenditure requirement.
Importantly, the Local Advertising Cooperative Contribution may be capped based on the by-laws adopted by the Local Advertising Cooperative, but this is 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 cooperative's activities. However, the cooperative cannot use any advertising, marketing, or promotional plans or materials without Clean Your Dirty Face's prior written consent.
While the Local Advertising Cooperative has discretion over creative concepts, materials, and endorsements used, this is also subject to Clean Your Dirty Face's approval and the availability of funds. 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 contributions may be used to cover costs related to advertising materials, media purchases, direct sales programs, and employing marketing firms. Franchisees should note that their business might not directly or proportionally benefit from their contribution, as each cooperative operates separately.