Who determines the monthly cooperative advertising fee for Body Brain Center franchisees?

According to the 2025 Body Brain Center Franchise Disclosure Document, the monthly cooperative advertising fee is initially set at 0.5% of Program Sales. However, this amount can be adjusted, temporarily suspended, or even eliminated through a majority vote of all franchisees within the advertising cooperative. If Body Brain Center or its affiliate operates a majority of the centers within the cooperative, increasing the fee requires consent from all franchisees in the cooperative.

Body Brain Center has the right to create advertising cooperatives and can allocate advertising fund fees to these cooperatives. They also determine the geographic territories and market areas for each cooperative and can require franchisees to participate in them. If an advertising cooperative is established, it may be self-administered by an advertising council, in which case franchisees must participate in the council and abide by its decisions. Alternatively, Body Brain Center may administer the cooperative themselves.

For a prospective Body Brain Center franchisee, this means that while the initial cooperative advertising fee is set, they have the potential to influence changes to this fee through participation in the advertising cooperative. However, Body Brain Center retains significant control over the formation and administration of these cooperatives, which could limit the franchisees' influence in some situations. It is important for potential franchisees to understand the structure and rules of the advertising cooperatives to assess their potential impact on advertising costs and strategies.