Are the existing Marketing Cooperatives for Beauty Bungalows mandatory or elective?

According to Beauty Bungalows's 2025 Franchise Disclosure Document, existing marketing cooperatives are elective. The FDD states that as of the date of the disclosure document, there are no cooperatives in existence in certain geographic areas, but these existing cooperatives are elective and are voluntarily formed and managed by the franchisees participating in the cooperative.

However, Beauty Bungalows may establish and require participation in a marketing cooperative in a geographic area where two or more Beauty Bungalows are located. If Beauty Bungalows establishes a marketing cooperative in your area, you may be required to join. The members, including Beauty Bungalows and its affiliates if applicable, will determine the contribution levels, with each franchise receiving one vote, and a 51% affirmative vote required for all material decisions. Your contribution will not exceed 2% of your Beauty Bungalows Franchise's monthly Gross Revenue, and these contributions can count toward your Local Area Marketing Requirement.

Beauty Bungalows retains the right to form, modify, change, dissolve, or merge Marketing Cooperatives. This means that while existing cooperatives are currently voluntary, Beauty Bungalows has the authority to make them mandatory in the future or establish new mandatory cooperatives. A prospective franchisee should inquire about Beauty Bungalows's plans for establishing mandatory marketing cooperatives in their target geographic area and understand the potential financial implications of contributing up to 2% of gross revenue to such a cooperative.