Is Extreme Art Studio required to contribute to the advertising cooperative on the same basis as franchisees?

According to the 2024 Extreme Art Studio Franchise Disclosure Document, if Extreme Art Studio owns a business within the area of a local or regional advertising cooperative, it will contribute to the cooperative on the same basis as its franchisees.

Franchisees may be required to participate in established local or regional advertising cooperatives. The area of each cooperative will be defined by Extreme Art Studio. Franchisees contribute 0.5% to 1% of Gross Sales to the cooperative, as determined by its members, for each Extreme Art Studio Business they own within the cooperative's area. These contributions are credited toward the franchisee's Local Advertising Requirement.

The members of the cooperative are responsible for administering it, including determining contribution amounts. Cooperatives with more than five franchisee members may be required to operate with governing documents and must prepare annual unaudited financial statements for review by each member. Extreme Art Studio reserves the right to form, change, dissolve, or merge any advertising cooperative in the future, and franchisees will be required to participate in compliance with the Franchise Operations Manual.