Can Body Brain Center change or dissolve advertising cooperatives?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to form, change, merge or dissolve advertising cooperativesin our discretion.
You must pay the monthly cooperative advertising fee established by us or the council, as applicable, which will be due on the sixth (6 th) day of each month for the prior month's operations.
The initial cooperative advertising fee shall be equal to 0.5% of Program Sales.
Upon the majority vote of all franchisees within the advertising cooperative, the amount of the cooperative advertising fee may be adjusted (or temporarily suspended) or the cooperative advertising fee may be eliminated altogether.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, Body Brain Center has the right to form, change, merge, or dissolve advertising cooperatives at its discretion. The purpose of these cooperatives is to create and/or purchase advertising programs that benefit franchisees within a specific region.
Specifically, Body Brain Center has the authority to allocate any portion of the advertising fund fee to the advertising cooperative, determine the composition of geographic territories and market areas for each cooperative, and require franchisees to participate in any advertising cooperative it establishes. If an advertising cooperative is implemented, Body Brain Center may establish an advertising council to self-administer the cooperative, in which franchisees must participate according to the council's rules and decisions. Alternatively, Body Brain Center may choose to administer the advertising cooperative itself.
Franchisees are obligated to pay the monthly cooperative advertising fee, which is initially set at 0.5% of Program Sales, as determined by Body Brain Center or the advertising council. However, the amount of the cooperative advertising fee can be adjusted, temporarily suspended, or eliminated altogether upon a majority vote of all franchisees within the advertising cooperative. This provides a mechanism for franchisees to influence the advertising fee structure, although Body Brain Center retains the ultimate authority to make changes to or dissolve the cooperatives.