Who are the members of a Beauty Bungalows Marketing Cooperative?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) 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.
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Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, the members of a Marketing Cooperative include all Beauty Bungalows operating in the geographic area of the cooperative. This includes franchises operated by Beauty Bungalows itself or its affiliates, if any.
Beauty Bungalows may establish a Marketing Cooperative in a geographic area where two or more franchises are located. The purpose of these cooperatives is to enhance marketing efforts in specific regions. Franchisees may be required to join a Marketing Cooperative if one exists or is established in their area.
Decisions within the Marketing Cooperative, such as contribution levels, require approval from at least 51% of all Beauty Bungalows operating within the cooperative's area. Each franchise location, including those operated by Beauty Bungalows or its affiliates, receives one vote. Franchisees' contributions to the Marketing Cooperative are capped at 2% of their monthly Gross Revenue and count toward their Local Area Marketing Requirement. Beauty Bungalows retains the right to form, modify, change, dissolve, or merge these Marketing Cooperatives.
As of the FDD's publication date, there are existing cooperatives in certain geographic areas, but participation is currently elective and managed voluntarily by the franchisees.