Who establishes the bylaws for cooperative advertising programs for Batteries Plus Bulbs?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
- C.
Cooperative Advertising.
Franchisee will participate in, support and contribute to one or more regional or local cooperative advertising or marketing programs that Franchisor may establish in an area or region where Franchisee's Store is located as designated by Franchisor.
If a cooperative is established, Franchisee must contribute an amount that Franchisor determines, up to a total of the greater of three percent (3%) of Franchisee's Store Net Revenues each calendar year or the Minimum Store Promotion Requirement; provided that Franchisee's obligations each calendar year under this Section 11(C) will be limited such that Franchisee's combined obligations under Sections 11(B) and 11(C) will not exceed the "Minimum Store Promotion Requirement" as described in Section 11(D) below.
Franchisor reserves the right to designate regional and local advertising or marketing markets, to establish regional advertising or marketing councils and to establish the bylaws and other rules under which each cooperative will operate.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the franchisor has the authority to establish the bylaws and other operational rules for any regional or local advertising cooperatives. Batteries Plus Bulbs designates the advertising markets and may establish regional advertising councils.
As a franchisee, you are required to participate in, support, and contribute to these cooperative advertising programs if Batteries Plus Bulbs establishes them in your store's area. The amount you contribute is determined by Batteries Plus Bulbs, up to 3% of your store's net revenues each calendar year or the Minimum Store Promotion Requirement, whichever is greater. Your combined obligations for the Digital Marketing and Local Media Program and cooperative advertising will not exceed the Minimum Store Promotion Requirement.
The Minimum Store Promotion Requirement is defined as a pro rata amount of $20,000 during the first calendar year based on the number of weeks the store is open. In subsequent years, it is the greater of 4% of the store's net revenues from the previous year or $20,000. This means franchisees must allocate a significant portion of their revenue to advertising and promotion, with Batteries Plus Bulbs retaining control over the cooperative's operational rules.