How are contributions to an Extreme Art Studio Local Advertising Cooperative credited?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
e establish a Local Advertising Cooperative in that area during this Franchise 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 those documents require.
- 9.4.2 If we establish a Local Advertising Cooperative in your geographic area pursuant to this Section 9.4, you agree to participate and contribute your share, as determined by the members of the Local Advertising Cooperative, to such Local Advertising Cooperative for each Extreme Art Studio Business that you own that exists within the Local Advertising Cooperative's area. Your contributions to a Local Advertising Cooperative will be credited to your Local Advertising Requirement described in Section 9.2, and payable within five days after the end of the calendar month (or as we designate). Your contributions to a Local Advertising Cooperative may also be capped based on the provisions of the bylaws adopted by the Local Advertising Cooperative, subject to our approval. You will pay these monies to us electronically, and we will remit them periodically to the Local Advertising Cooperative. Extreme Art Studio Businesses owned by us or our affiliates will contribute to their respective Local Advertising Cooperative on the same basis as our franchise owners. Members of the cooperative will be responsible for administering the cooperative, including determining the amount of contributions from each member.
- 9.4.3 Each Extreme Art Studio Business contributing to a Local Advertising Cooperative will have one 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. We agree to assist in the formulation of marketing plans and programs which will be implemented under the direction of the Local Advertising Cooperative.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, if a Local Advertising Cooperative is established in a franchisee's area, the franchisee's contributions to the cooperative will be credited toward their Local Advertising Requirement, as detailed in Section 9.2 of the agreement. These contributions are payable within five days after the end of the calendar month, or as otherwise designated by Extreme Art Studio.
Furthermore, the contributions to the Local Advertising Cooperative may be subject to caps as determined by the bylaws adopted by the cooperative, with Extreme Art Studio's approval. Franchisees are required to remit these funds electronically to Extreme Art Studio, which will then periodically forward them to the Local Advertising Cooperative. Notably, Extreme Art Studio businesses owned by the company or its affiliates will contribute to their respective Local Advertising Cooperative under the same terms as the franchisees.
Each Extreme Art Studio Business contributing to a Local Advertising Cooperative has one 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 Extreme Art Studio's prior written consent. Extreme Art Studio agrees to assist in the formulation of marketing plans and programs which will be implemented under the direction of the Local Advertising Cooperative.
This arrangement ensures that local advertising efforts are coordinated and that franchisees receive credit for their contributions towards meeting their local advertising obligations. However, it's important to note that the effectiveness and direct benefit of these contributions may vary, and the cooperative has discretion over creative concepts and materials, subject to Extreme Art Studio's approval and fund availability.