How is the Local Advertising Cooperative Contribution for Clean Your Dirty Face franchisees payable?
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, if a Local Advertising Cooperative is established in a franchisee's area, the franchisee must participate and contribute their share. The amount of this contribution is determined by the Local Advertising Cooperative and may be periodically changed. The FDD specifies that the Local Advertising Cooperative Contribution will be payable in the same manner as the Royalty.
This means that the frequency and method of payment for the Local Advertising Cooperative Contribution will mirror those of the royalty payments. Franchisees should clarify with Clean Your Dirty Face the exact payment schedule and methods for royalties to understand how the Local Advertising Cooperative Contribution will be paid. The contribution amount may also be capped based on the by-laws adopted by the Local Advertising Cooperative, subject to Clean Your Dirty Face's approval.
Prospective franchisees should inquire about the typical range of Local Advertising Cooperative Contributions, how frequently these contributions are adjusted, and the specific payment methods accepted. Understanding these details is crucial for budgeting and managing cash flow effectively. Franchisees should also ask for a copy of the Local Advertising Cooperative's by-laws to understand any potential caps on contributions and the rules governing the cooperative.