How will I pay my contributions to the Local Advertising Cooperative for my Extreme Art Studio franchise?
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 the 2024 Extreme Art Studio Franchise Disclosure Document, if a Local Advertising Cooperative is established in your area, you are required to participate and contribute your share as determined by the members of the cooperative. These contributions are credited towards your Local Advertising Requirement, which is $500 per month.
You will pay your Local Advertising Cooperative contributions to Extreme Art Studio electronically, and Extreme Art Studio will then remit the payments to the Local Advertising Cooperative periodically. These payments are due within five days after the end of each calendar month, or as otherwise designated by Extreme Art Studio. The amount you contribute may 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 will contribute to their respective Local Advertising Cooperative on the same basis as franchisees. Each contributing Extreme Art Studio Business has one vote on matters involving the activities of the Local Advertising Cooperative. The Local Advertising Cooperative manages its own administration, including setting contribution amounts for each member.