If an advertising council is established for a Body Brain Center advertising cooperative, what are the franchisee's obligations?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
If we implement an advertising cooperative, we may establish an advertising council to self-administer the advertising cooperative.
You must participate in the council according to the council's rules and procedures and you must abide by the council's decisions.
Alternatively, we may administer the advertising cooperative ourselves.
We reserve 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, if Body Brain Center implements an advertising cooperative and establishes an advertising council to self-administer it, franchisees must participate in the council according to its rules and procedures and abide by the council's decisions.
Franchisees are also obligated to pay the monthly cooperative advertising fee, which is established either by Body Brain Center or the advertising council. This fee is due on the sixth day of each month for the prior month's operations. The initial cooperative advertising fee is 0.5% of Program Sales. However, this amount may be adjusted, temporarily suspended, or eliminated altogether upon a majority vote of all franchisees within the advertising cooperative.
Body Brain Center retains the right to form, change, merge, or dissolve advertising cooperatives at its discretion. This means that while franchisees have a say in the advertising fee through voting, Body Brain Center ultimately controls the structure and existence of these cooperatives.