Who generally contributes at the same rate as Batteries Plus Bulbs franchisees to the Cooperative?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
We may form a local or regional advertising or marketing cooperative in your area. If established, we may require you to participate in and contribute to one or more local or regional advertising or marketing cooperatives (the "Cooperative") established in an area or region where your Store is located. If a Cooperative is established, you must contribute an amount that we determine or that the Cooperative may determine (with our approval), up to a total of the greater of 3% of your Store Net Revenues or your Minimum Store Promotion Requirement each calendar year, although your cooperative advertising obligations each calendar year will be limited such that your combined obligations for cooperative advertising and Digital Marketing and Local Media Program contributions will not exceed the "Minimum Store Promotion Requirement" (as described in Item 6). All members of the Cooperative, including those Stores we own, generally will contribute at the same rate. The Cooperative will use contributions to fund local and regional marketing, advertising and promotional campaigns and activities that we determine or approve for use by the Cooperative. Our in-house marketing staff may establish marketing and advertising campaigns and activities that the Cooperative must use. We reserve the right to require each Cooperative to adopt written governing documents. A copy of the governing documents (if any) of any Cooperative for your market area is available upon request. We will determine the voting procedures for each Cooperative. Members of the Cooperative and their elected officials (if any) are responsible for administering the local Cooperative while we reserve the right to administer regional Cooperatives. We do not require that each Cooperative prepare annual financial statements and make those financial statements available to all franchisees in the Cooperative. We have the power to establish advertising and marketing Cooperatives and the rules under which regional and local advertising and marketing Cooperatives will operate.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 34–43)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, when a local or regional advertising cooperative is established, all members, including Batteries Plus Bulbs-owned stores, typically contribute to the Cooperative at the same rate as franchisees.
Franchisees are required to contribute an amount determined either by Batteries Plus Bulbs or the Cooperative itself (with Batteries Plus Bulbs' approval), up to the greater of 3% of the store's Net Revenues or the Minimum Store Promotion Requirement each calendar year. However, the combined obligations for cooperative advertising and Digital Marketing and Local Media Program contributions will not exceed the Minimum Store Promotion Requirement.
The funds collected by the Cooperative are used for local and regional marketing, advertising, and promotional campaigns and activities that Batteries Plus Bulbs determines or approves. Batteries Plus Bulbs' in-house marketing staff may also establish marketing and advertising campaigns and activities that the Cooperative is required to use. Batteries Plus Bulbs retains the right to administer regional Cooperatives and determine the voting procedures for each Cooperative.