Who determines the amount of contributions from each member of the 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.
- 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
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the members of the Local Advertising Cooperative determine the amount of contributions from each member. 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 is established to administer advertising programs and develop advertising, marketing, and promotional materials for a specific geographic area. Extreme Art Studio requires that each Local Advertising Cooperative that exceeds five franchisee members be organized and governed by written documents, which are available for participating franchise owners to review. Extreme Art Studio may change, dissolve, and merge Local Advertising Cooperatives.
Franchisees must participate in the Local Advertising Cooperative and contribute their share, as determined by the members. These contributions are credited towards the franchisee's Local Advertising Requirement, with payments due within five days after the end of the calendar month. The contributions may also be capped based on the bylaws adopted by the Local Advertising Cooperative, subject to Extreme Art Studio's approval. Extreme Art Studio Businesses owned by Extreme Art Studio or its affiliates contribute to their respective Local Advertising Cooperative on the same basis as franchisees.
The Local Advertising Cooperative has discretion over the creative concepts, materials, and endorsements used, subject to Extreme Art Studio's approval and the availability of funds. The cooperative can use assessments to cover the costs of preparing and producing advertising materials, purchasing media advertising, implementing direct sales programs, and employing marketing firms. Extreme Art Studio will account for the monies collected on behalf of the Local Advertising Cooperative separately from its other funds and will not use them to defray its general operating expenses.