If a Co-Op is formed covering a Bft franchisee's area, must the franchisee join?

According to Bft's 2025 Franchise Disclosure Document, if one or more Co-Ops are formed that cover a franchisee's area, the franchisee must join and actively participate in the Co-Op. These Co-Ops can be local, regional, or national. Franchisees in good standing are entitled to one vote at the time a vote is taken. A franchisee is considered in "Good Standing" if they are not in default of any obligation to Bft or its affiliates. This includes obligations under the Franchise Agreement, any other agreement between the franchisee and Bft, the Learning Management System, or other System Standards. Franchisees may be required to contribute amounts determined by the Co-Ops, but these contributions are subject to the Marketing Expenditure Cap.

This requirement to join and participate in a Co-Op means that Bft franchisees will be obligated to contribute to marketing efforts decided upon by the group. This could involve additional costs for the franchisee, but it also provides an opportunity for collaborative marketing strategies and potentially greater brand awareness in their area. The franchisee's ability to influence the Co-Op's decisions is tied to their "Good Standing" status, so maintaining compliance with all agreements and standards is crucial.

Franchisees should carefully consider the potential financial obligations and time commitments associated with Co-Op membership. They should also inquire about the typical activities and decision-making processes of Bft Co-Ops to understand how they can effectively participate and contribute to the group's marketing efforts. Understanding the Marketing Expenditure Cap and how it applies to Co-Op contributions is also essential for managing marketing expenses.