Who determines the amount of contributions to a Bft Regional or Local Advertising Co-Op?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Regional or Local Advertising Co-Op | As the Co-Op determines (not currently charged) | As the Co-Op determines | We may establish regional cooperatives comprised of Studios that are within a given geographical area (each, a “Co-Op”). If a Co-Op is established where your Studio is located, you will be required to participate in that Co-Op and contribute to that Co-Op in the amounts the Co-Op determines. We may, on notice to you, adjust the amount of your required contributions to the Co-Op, subject to the Marketing Expenditure Cap. 3 |
Source: Item 6 — OTHER FEES (FDD pages 21–26)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the amount of contributions to a Regional or Local Advertising Co-Op is determined by the Co-Op itself. Bft may establish regional cooperatives comprised of Studios within a given geographical area. If a Co-Op is established where a franchisee's Studio is located, the franchisee will be required to participate and contribute in the amounts the Co-Op determines. Bft retains the right to adjust the required contributions to the Co-Op, providing notice to the franchisee, but this is subject to a Marketing Expenditure Cap. This fee is not currently charged.
The Marketing Expenditure Cap limits the total percentage of Gross Sales that Bft can require franchisees to contribute to the Brand Development Fund, a Regional or Local Advertising Co-Op, and spend on the Local Advertising Requirement. This combined spending cannot exceed 7% per month. If the required marketing expenses exceed this cap, the franchisee must provide written notice to Bft. Until Bft receives this notice, the franchisee must continue to comply with the original marketing requirements, and no excess amounts will be refunded.
After providing the Marketing Notice, a franchisee may reduce their Local Advertising Requirement to stay below the Marketing Expenditure Cap. However, they must immediately return to full compliance with the original Required Marketing expenses once the cap is no longer exceeded. This system ensures that while the Co-Op determines the contribution amount, Bft franchisees have some protection against excessive marketing costs through the Marketing Expenditure Cap.