Who is responsible for administering the advertising cooperative for Extreme Art Studio franchisees?

You may be required to participate in any established local or regional advertising cooperative for Extreme Art Businesses. The area of each local and regional advertising cooperative will be defined by us, based on our assessment of the area. Franchisees in each cooperative will contribute an amount to the cooperative of 0.5% to 1% of Gross Sales as determined by its members for each Extreme Art Studio Business that the franchisee owns that exists within the cooperative's area. Your contributions to a local and regional advertising cooperative will be credited to your Local Advertising Requirement. Each Extreme Art Studio Business we own that exists within the cooperative's area will contribute to the cooperative on the same basis as franchisees. Members of the cooperative will be responsible for administering the cooperative, including determining the amount of contributions from each member. We may require that each cooperative that exceeds five franchisee members must operate with governing documents. Each cooperative must prepare annual unaudited financial statements, and the statements will be provided for review to each member of such cooperative. We reserve the right to form, change, dissolve, or merge any advertising cooperative formed in the future. If we elect to form any cooperatives, or if any cooperative(s) already exist near your territory, you will be required to participate in compliance with the provisions of the Franchise Operations Manual, which we may periodically modify in our discretion.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–37)