What is a Local Advertising Cooperative for Clean Your Dirty Face, as defined in the FDD?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
roved or have disapproved.
Local Advertising Cooperative
We, our affiliates, or our designees may establish a local advertising cooperative ("Local Advertising Cooperative") in geographical areas in which 2 or more CYDF Facial Bars are operating. The Local Advertising Cooperative will be organized and governed by written documents and will begin operating on a date that we determine in advance. These written documents will be available for participating franchisees to review. We may change, dissolve, merge and reinstate any Local Advertising Cooperatives. Each Local Advertising Cooperative's purpose is, with our approval, to administer advertising programs and develop advertising, marketing and promotional materials for the area that the Local Advertising Cooperative covers. If we have established a Local Advertising Cooperative for the geographic area in which your CYDF Facial Bar is located, as of the time you sign the Franchise Agreement, or if we establish a Local Advertising Cooperative in that area during the Franchise Agreement's term, you must 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, 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.
Each CYDF Facial Bar contributing to a Local Advertising Cooperative will have 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, subject to our approval and subject to availability of funds, the Local Advertising Cooperative will have authority 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. 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 must submit to us and the Local Advertising Cooperative any reports that we or the Local Advertising Cooperative require.
You understand and acknowledge that your CYDF Facial Bar might not benefit directly or in proportion to its Local Advertising Cooperative Contribution. Local Advertising Cooperatives for Facial Bars 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 a Local Advertising Cooperative and to forgive, waive, settle and compromise all claims by or against a Local Advertising Cooperative. Except as expressly provided above, we assume no direct or indirect liability or obligation to you with respect to the maintenance, direction or administration of the Local Advertising Cooperative(s).
Franchisee Advisory Council
We do not have a franchisee advisory council that advises us on advertising policies, though we may choose to establish such a council in the future.
Franchise System Website
We may establish, acquire, or host any website(s) to advertise, market, and promote CYDF Facial Bars, the products and services that they offer and sell, and/or a CYDF Facial Bar franchise opportunity (each, a "Franchise System Website"). We may (but are not required to) provide you with a webpage on a Franchise System Website that references your CYDF Facial Bar for informational purposes only. If we provide you with a webpage on a Franchise System Website, you must: (i) provide us the information and materials we request to develop, update, and modify your webpage; (ii) notify us whenever any information on your webpage is not accurate; and (iii) if we give you the right to modify your webpage, notify us whenever you change the content of your webpage.
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, a Local Advertising Cooperative is an entity that may be established by Clean Your Dirty Face, its affiliates, or designees in geographical areas where two or more Clean Your Dirty Face Facial Bars are operating. These cooperatives are governed by written documents available for franchisee review and can be changed, dissolved, merged, or reinstated by Clean Your Dirty Face. The primary purpose of each cooperative is to manage advertising programs and develop marketing materials for its specific area, subject to Clean Your Dirty Face's approval. Franchisees located within the cooperative's area are required to join and participate as directed by Clean Your Dirty Face. Each Clean Your Dirty Face Facial Bar contributing to a Local Advertising Cooperative has one vote on matters involving the activities of the cooperative.
Franchisees must contribute to the Local Advertising Cooperative if one is established in their area; this contribution is termed the "Local Advertising Cooperative Contribution." The amount is determined and periodically adjusted by the cooperative, payable in the same manner as the royalty fees. These contributions may be capped based on the cooperative's by-laws, but are subject to Clean Your Dirty Face's approval. The funds collected are to be used for preparing advertising materials, purchasing media advertising, implementing direct sales programs, and hiring marketing and public relations firms. These funds are accounted for separately from Clean Your Dirty Face's general operating expenses.
While Clean Your Dirty Face assists in formulating marketing plans, the Local Advertising Cooperative has authority over creative concepts and materials, subject to Clean Your Dirty Face's approval and fund availability. Franchisees must submit required reports to both Clean Your Dirty Face and the cooperative. It's important to note that a franchisee's Clean Your Dirty Face Facial Bar might not directly or proportionally benefit from its contribution. Clean Your Dirty Face retains the right to use collection agents and legal proceedings to collect contributions on behalf of the cooperative and can also settle claims. However, Clean Your Dirty Face assumes no direct liability for the cooperative's maintenance or administration, except as expressly provided.
Franchisees are already required to spend between 4% and 10% of their gross sales on local advertising. If a franchisee is required to make Local Advertising Cooperative Contributions, those contributions will count toward the local advertising expenditure requirement. Indirect costs, such as salaries for employees administering campaigns, and costs for in-store advertising will not be counted toward the local advertising expenditure.