Who collects the cooperative advertising fees for Body Brain Center franchisees?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ther. If we or an affiliate of ours operate a majority of the Body & Brain Centers within the advertising cooperative, we will increase the cooperative advertising fee only with the consent of all franchisees within the advertising cooperative. We will collect all cooperative advertising fees and pay them to the applicable advertising cooperative unless we administer the advertising cooperative ourselves.
- 9.5 Online Payment Program. We have implemented a program pursuant to which we will allow existing, new, or potential customers to pay for Introductory Class sessions, Trial Class sessions, Group Classes, and Private Classes through our website or a third-party website (the "Online Payment Program"). You agree to participate in the Online Payment Program.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body Brain Center Franchise Disclosure Document, Body Brain Center will collect all cooperative advertising fees and pay them to the applicable advertising cooperative unless Body Brain Center administers the advertising cooperative themselves. The initial cooperative advertising fee is 0.5% of Program Sales.
Franchisees may adjust or eliminate the cooperative advertising fee with a majority vote of all franchisees within the advertising cooperative. However, if Body Brain Center or an affiliate operates a majority of the Body & Brain Centers within the advertising cooperative, they can only increase the cooperative advertising fee with the consent of all franchisees within the advertising cooperative.
This means that Body Brain Center franchisees contribute to a cooperative advertising fund, which is used for marketing and advertising efforts. The franchisor typically manages these funds, but franchisees have some say in how the money is spent, especially if they form a majority within the cooperative. This arrangement is fairly common in franchising, as it allows for both national brand-building and local marketing initiatives.