What is the deadline for paying contributions to an Extreme Art Studio Local Advertising Cooperative?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
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 must contribute their share as determined by the members of the cooperative. These contributions are credited towards the franchisee's Local Advertising Requirement. The deadline for these payments is within five days after the end of the calendar month, or as otherwise designated by Extreme Art Studio.
Extreme Art Studio collects these contributions electronically and then remits them periodically to the Local Advertising Cooperative. Extreme Art Studio businesses owned by the company or its affiliates contribute to their respective Local Advertising Cooperative on the same basis as franchisees. The members of the cooperative are responsible for administering it, including determining the contribution amount from each member.
This means that an Extreme Art Studio franchisee needs to be prepared to make these payments promptly to remain in good standing. The franchisee should also stay informed about any specific designations or changes to the payment schedule communicated by Extreme Art Studio. Franchisees should factor these monthly advertising costs and payment deadlines into their financial planning and cash flow management.