Who is responsible for the administration of a Beauty Bungalows Marketing Cooperative?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
We may establish a Marketing Cooperative in a geographic area in which two or more Beauty Bungalows are located. The Marketing Cooperative's members include all Beauty Bungalows franchises 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. We will determine how any Marketing Cooperative is organized and governed, but the Marketing Cooperative's members are responsible for its administration and determination of contribution levels, provided your required contribution to the Marketing Cooperative will not exceed 2% of your Beauty Bungalows Franchise's location's monthly Gross Revenue. Each Marketing Cooperative will operate under written governing documents prepared by us or our designee. Such documentation will be made available to members of the Marketing Cooperative upon reasonable request. Marketing Cooperatives will prepare an annual unaudited financial statement and make it available to members upon reasonable request. 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 franchisee group receiving one vote. We may form, modify, change, dissolve, or merge Marketing Cooperatives. Funds contributed to a Marketing Cooperative will not be utilized to solicit new franchise sales. Any fees you pay to a Marketing Cooperative will count towards your Local Area Marketing Requirement, though the fees imposed by the Marketing Cooperative may exceed your required Local Area Marketing Requirement obligation.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–30)
What This Means (2025 FDD)
According to the 2025 Beauty Bungalows Franchise Disclosure Document, if a Marketing Cooperative is established, the cooperative's members are responsible for its administration. These members include all Beauty Bungalows franchisees operating in the geographic area of the cooperative, potentially including the franchisor and its affiliates if they operate franchises in that area.
Beauty Bungalows determines how the Marketing Cooperative is organized and governed. However, the franchisees themselves handle the day-to-day administration. The FDD specifies that the required contribution to the Marketing Cooperative will not exceed 2% of the Beauty Bungalows Franchise's location's monthly Gross Revenue.
Each Marketing Cooperative operates under written governing documents prepared by Beauty Bungalows or its designee. These documents are available to members upon request. The Marketing Cooperative must also prepare an annual unaudited financial statement, which is also available to members upon request. All material decisions, including contribution levels, require the affirmative vote of at least 51% of all Beauty Bungalows operating within the cooperative's area, with each franchisee group receiving one vote.