Under what conditions would a Bft franchisee be required to participate in a 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, a franchisee will be required to participate in a Regional or Local Advertising Co-Op if Bft establishes one in the franchisee's geographical area. The amount the franchisee must contribute will be determined by the Co-Op itself. Bft retains the right to adjust the required contributions with notice to the franchisee, but this is subject to the Marketing Expenditure Cap. Currently, Bft is not charging for the Regional or Local Advertising Co-Op.
The Marketing Expenditure Cap limits the total percentage of Gross Sales that Bft can require a franchisee to contribute to the Brand Development Fund, a Regional or Local Advertising Co-Op, and 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.
After providing written notice, the franchisee can reduce their Local Advertising Requirement to stay below the 7% Marketing Expenditure Cap. However, the franchisee must immediately return to full compliance with all required marketing contributions once the cap is no longer exceeded. This ensures that while franchisees are protected from excessive marketing costs, they also maintain adequate local advertising efforts when financially feasible.