factual

How is the Clean Your Dirty Face Local Advertising Cooperative Contribution paid?

Clean_Your_Dirty_Face Franchise · 2025 FDD

Answer 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.

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 Local Advertising Cooperative Contribution is paid in the same manner as the Royalty fee. This contribution also counts toward the franchisee's Local Advertising Expenditure requirement.

The amount of the Local Advertising Cooperative Contribution is established, but may 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.

Clean Your Dirty Face reserves the right to require franchisees to pay part or all of the Local Advertising Expenditure to them or their designee. They may also cease collecting all or part of the Local Advertising Expenditure, or change the proportion that the franchisee must pay to them or their designees, at any time and on one or more occasions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.