How many votes does each Extreme Art Studio Business have in the Local Advertising Cooperative?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
r 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. 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. You agree that the Local Advertising Cooperative assessments may be used to pay the costs of preparing and producing video, audio and written advertising and direct sales materials for Extreme Art Studio Businesses in your area; purchasing direct mail and other media advertising for Extreme Art Studio Businesses in your area;
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, each Extreme Art Studio Business that contributes to a Local Advertising Cooperative has one vote on matters involving the activities of that cooperative. This means that regardless of the size or contribution amount of an individual franchise, each location gets an equal say in the cooperative's decisions.
This structure ensures that all franchisees within the cooperative have a voice in how advertising and marketing efforts are directed. However, the Local Advertising Cooperative's plans and materials are subject to Extreme Art Studio's prior written consent, giving the franchisor ultimate control over the cooperative's activities.
Franchisees should be aware that while they have a vote, the franchisor retains the power to approve or disapprove any advertising, marketing, or promotional plans. This balance of power is typical in franchising, where the franchisor seeks to maintain brand consistency while allowing for some local adaptation. Franchisees should engage actively in the Local Advertising Cooperative to voice their opinions and understand the decision-making process.