What is the purpose of the Clean Your Dirty Face Local Advertising Cooperative?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that we or our affiliates or designees may establish or direct the establishment of a local advertising cooperative ("Local Advertising Cooperative") in geographical areas (as determined by us) in which two (2) or more CYDF Facial Bars are operating. The Local Advertising Cooperative will be organized and governed by written documents in a form and manner, and begin operating on a date, that we determine in advance. Such written documents will be available for participating franchise owners 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 Business is located, as of the time you sign this Agreement, or if we establish a Local Advertising Cooperative in that area during 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. You agree to submit to us and the Local Advertising Cooperative any reports that we or the Local Advertising Cooperative require.
You understand and acknowledge that your Business might not benefit directly or in proportion to its Local Advertising Cooperative Contribution. Local Advertising Cooperatives 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 the Local Advertising Cooperative and to forgive, waive, settle and compromise all claims by or against the Local Advertising Cooperative. Except as expressly provided in this Section 9.E, we assume no direct or indirect liability or obligation to you with respect to the maintenance, direction or administration of the 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, the purpose of the Local Advertising Cooperative is to administer advertising programs and develop advertising, marketing, and promotional materials for the geographic area it covers, with Clean Your Dirty Face's approval. Clean Your Dirty Face or its affiliates may establish these cooperatives in areas where two or more CYDF Facial Bars are operating. Franchisees are required to join and participate in the Local Advertising Cooperative if one is established for their area. Each Clean Your Dirty Face location contributing to the cooperative has one vote on its activities. However, all advertising plans and materials must receive Clean Your Dirty Face's prior written consent.
Clean Your Dirty Face will assist in creating marketing plans and programs, but the Local Advertising Cooperative has discretion over the creative aspects, materials, and endorsements used, subject to fund availability and Clean Your Dirty Face's approval. The contributions made to the Local Advertising Cooperative can be used to cover various costs, including preparing advertising materials, purchasing media advertising, implementing direct sales programs, and hiring marketing and public relations firms. These contributions are kept separate from Clean Your Dirty Face's other funds and are not used for its general operating expenses.
Franchisees must submit required reports to both Clean Your Dirty Face and the Local Advertising Cooperative. It's important to note that a franchisee's business might not directly or proportionally benefit from its contributions, as each cooperative operates independently. Clean Your Dirty Face retains the right to collect contributions and pursue legal action for unpaid amounts on behalf of the cooperative. Franchisees' contributions to the Local Advertising Cooperative count toward their Local Advertising Expenditure requirement, which ranges from 4% to 10% of their business's gross sales, depending on their revenue. The Local Advertising Cooperative Contributions 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.