Can the Local Advertising Cooperative Contribution for Clean Your Dirty Face franchisees be capped?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
If we establish a Local Advertising Cooperative in your geographic area, you must participate and contribute your share to such Local Advertising Cooperative ("Local Advertising Cooperative Contribution"). The amount of your Local Advertising Cooperative Contribution will be determined by the Local Advertising Cooperative (and periodically changed, if applicable) at the time the Local Advertising Cooperative is established. Your Local Advertising Cooperative Contribution will be payable in the same manner as the Royalty. 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.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–39)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the Local Advertising Cooperative Contribution may be capped. The amount of the Local Advertising Cooperative Contribution is determined by the Local Advertising Cooperative and may be periodically changed. The contribution is payable in the same manner as the Royalty. The Local Advertising Cooperative Contribution may also be capped based on the provisions of the by-laws adopted by the Local Advertising Cooperative, subject to Clean Your Dirty Face's approval.
If a Local Advertising Cooperative is established in the franchisee's geographic area, the franchisee must participate and contribute their share. Each Clean Your Dirty Face Facial Bar contributing to a Local Advertising Cooperative has one vote on matters involving the activities of the cooperative. However, the cooperative cannot use any advertising, marketing, or promotional plans or materials without Clean Your Dirty Face's prior written consent.
Clean Your Dirty Face tries to use the Marketing Fund in a manner that will benefit all Clean Your Dirty Face Facial Bars, but it cannot ensure that the Marketing Fund's expenditures for any specific geographic area will be proportionate to the Marketing Fund Contributions of contributors in that geographic area. The franchisee understands that their Clean Your Dirty Face Facial Bar might not benefit directly or in proportion to its Local Advertising Cooperative Contribution.