How are Marketing Cooperative fees collected for a Beauty Bungalows franchise?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
lows Franchise receiving one vote. We may collect Marketing Cooperative fees and transfer those fees to the Marketing Cooperative, or the Marketing Cooperative may collect the fees directly, as we determine. If a Marketing Cooperative is established in your geographic area, the members of the Marketing Cooperative will establish your required contribution to the Marketing Cooperative, provided your required contribution to the Marketing Cooperative will not exceed 2% of your Beauty Bungalows Franchise's monthly Gross Revenue, and any contributions you make to the Marketing Cooperative will count toward your required Local Area Marketing Requirement. We may form, modify, change, dissolve, or merge Marketing Cooperatives.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, the method of collecting Marketing Cooperative fees depends on the franchisor's determination. Beauty Bungalows may either collect the fees themselves and then transfer them to the Marketing Cooperative, or they may allow the Marketing Cooperative to collect the fees directly from franchisees.
The FDD specifies that if a Marketing Cooperative is established in a franchisee's area, the members of the cooperative will determine the required contribution amount. However, this contribution cannot exceed 2% of the Beauty Bungalows Franchise's monthly Gross Revenue. Any contributions made to the Marketing Cooperative will count toward the franchisee's required Local Area Marketing Requirement.
As of the date of the 2025 Disclosure Document, there are no mandatory Marketing Cooperatives in existence, but existing cooperatives are elective and voluntarily formed and managed by the franchisees participating in the cooperative. This means that currently, franchisees may have the option to join a cooperative, but there is no requirement to do so. However, Beauty Bungalows retains the right to establish mandatory Marketing Cooperatives in the future.