If Body Brain Center implements an advertising cooperative, what options does it have for administering the cooperative?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
If we implement an advertising cooperative in a particular region, we have the right to establish an advertising council to self-administer the cooperative or we can administer the cooperative ourselves. You must participate in the council according to the council's rules and procedures and you must abide by the council's decisions. Advertising cooperatives are not required to operate from written governing documents. Advertising cooperatives will prepare annual or periodic financial statements. These financial statements will be made available to franchisees within the advertising cooperative upon request. We reserve the right to form, change, merge or dissolve advertising cooperatives in our discretion.
Source: Item 11 — FRANCHISOR'S ASSISTANCE**, ADVERTISING, **COMPUTER SYSTEMS AND TRAINING (FDD pages 20–29)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, if the company implements an advertising cooperative in a particular region, it has two options for administering the cooperative. Body Brain Center can either establish an advertising council to self-administer the cooperative, or it can administer the cooperative itself.
If an advertising council is established, franchisees must participate in the council according to its rules and procedures and abide by its decisions. The advertising cooperatives are not required to operate from written governing documents but will prepare annual or periodic financial statements that will be made available to franchisees within the advertising cooperative upon request.
Body Brain Center also reserves the right to form, change, merge, or dissolve advertising cooperatives at its discretion. This gives Body Brain Center significant control over the advertising strategies and how funds are spent within different regions. For a prospective franchisee, this means understanding that while they must participate in the advertising cooperative if one is established in their region and pay the cooperative advertising fee (up to 0.5% of Program Sales), the ultimate decision-making power rests with Body Brain Center.