What is a 'Co-Op' in the context of a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may decide to form one or more associations and/or sub-associations of BFT Studios to conduct various marketing-related activities on a cooperative basis (a "Co-Op").
If one or more Co-Ops (local, regional and/or national) are formed covering Franchisee's area, then Franchisee must join and actively participate.
Franchisee will be entitled to one (1) vote if Franchisee is in Good Standing at the time the vote is taken.
Franchisee will be considered in "Good Standing" if it is not in default of any obligation to Franchisor or any of Franchisor's affiliates, whether arising under this Agreement or any other agreement between Franchisee and Franchisor (or any of Franchisor's affiliates), the Learning Management System or other System Standards.
Franchisee may be required to contribute
such amounts as are determined from time to time by such Co-Ops, subject to the Marketing Expenditure Cap.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a "Co-Op" refers to associations or sub-associations of Bft studios that the Franchisor may form to conduct marketing-related activities on a cooperative basis. If a Co-Op is formed that covers the franchisee's area, the franchisee is required to join and actively participate in it. Franchisees in good standing are entitled to one vote within the Co-Op. Franchisees are considered in "Good Standing" if they are not in default of any obligation to Bft or its affiliates under any agreement, the Learning Management System, or other System Standards. Franchisees may be required to contribute amounts as determined by the Co-Ops, subject to the Marketing Expenditure Cap.
This means that as a Bft franchisee, you may be obligated to participate in a marketing cooperative with other franchisees in your region or nationally. These Co-Ops are designed to pool resources and coordinate marketing efforts to benefit all members. Your participation is mandatory if a Co-Op covers your area, and you'll have a say in the Co-Op's decisions through your vote, provided you are in good standing with Bft.
However, this also means you'll need to budget for potential contributions to the Co-Op, which will be used for marketing activities. The amount you contribute will be determined by the Co-Op members, but it is subject to the Marketing Expenditure Cap outlined in the Franchise Agreement. It is important to understand how these Co-Ops operate, what marketing activities they typically undertake, and how the Marketing Expenditure Cap is calculated to assess the potential financial impact on your Bft franchise.