If Body Brain Center implements an advertising cooperative, what might they establish?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body & Brain Center FDD, if Body & Brain Center establishes an advertising cooperative, the initial cooperative advertising fee will be 0.5% of Program Sales. This means that franchisees would contribute 0.5% of their gross sales from specific programs to a collective advertising fund. This fund is intended to support marketing efforts that benefit all members of the cooperative.
The FDD also states that the amount of the cooperative advertising fee may be adjusted, temporarily suspended, or even eliminated altogether. These changes can occur upon a majority vote of all franchisees within the advertising cooperative, giving franchisees a voice in how their advertising funds are managed. However, if Body & Brain Center or an affiliate operates a majority of the Body & Brain Centers within the cooperative, increasing the fee requires the consent of all franchisees, protecting franchisees from potentially disproportionate increases.
Body & Brain Center will collect all cooperative advertising fees and pay them to the advertising cooperative unless Body & Brain Center manages the advertising cooperative themselves. This indicates that the advertising cooperative is intended to be a self-governing entity, controlled by the franchisees, unless Body & Brain Center decides to administer it directly. This structure allows for flexibility in how advertising strategies are developed and implemented, potentially leading to more effective and targeted campaigns.