What is the maximum contribution I can be required to make to a Beauty Bungalows Marketing Cooperative?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
We may establish and require a marketing cooperative in a geographic area in which two or more Beauty Bungalows are located ("Marketing Cooperative").
The Marketing Cooperative's members will include all Beauty Bungalows operating in the geographic area, including those operated by us and our affiliates, if applicable.
We may require you to join a Marketing Cooperative existing or established in a geographic area encompassing your Beauty Bungalows Franchise.
All material decisions of the Marketing Cooperative, including contribution levels, will require the affirmative vote of at least 51% of all Beauty Bungalows operating within the Marketing Cooperative's area (including those that we and our affiliates operate, if any), with each Beauty Bungalows 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.
As of the date of this 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.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, if a Marketing Cooperative is established in your area, the members determine the required contribution. However, your contribution cannot exceed 2% of your Beauty Bungalows franchise's monthly Gross Revenue. Any contributions made to the Marketing Cooperative will count toward your Local Area Marketing Requirement.
Beauty Bungalows may establish a marketing cooperative in a geographic area where two or more Beauty Bungalows are located. The cooperative's members include all Beauty Bungalows operating in the area, including those operated by Beauty Bungalows and its affiliates, if applicable. You may be required to join a Marketing Cooperative if one exists or is established in your geographic area.
All material decisions of the Marketing Cooperative, including contribution levels, require the affirmative vote of at least 51% of all Beauty Bungalows operating within the Marketing Cooperative's area, with each Beauty Bungalows Franchise receiving one vote. Beauty Bungalows may collect Marketing Cooperative fees and transfer those fees to the Marketing Cooperative, or the Marketing Cooperative may collect the fees directly, as Beauty Bungalows determines. Beauty Bungalows may form, modify, change, dissolve, or merge Marketing Cooperatives.
As of the date of the 2025 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.