What is the maximum advertising cooperative fee that a Body Brain Center franchisee must pay?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, but need not, form one or more advertising cooperatives for the benefit of all Body & Brain Centers located within a particular region. If your Center is located within a region subject to an advertising cooperative, you must pay the cooperative advertising fee, which will not exceed 0.5% of Program Sales. We have the right to allocate any portion of the advertising fund fees to an advertising cooperative. We also have the right to determine the composition of all geographic territories and market areas for the implementation of each advertising cooperative. Generally, the boundaries of an advertising cooperative will coincide with a city's metropolitan area.
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 a franchisee's center is located within a region subject to an advertising cooperative, they must pay a cooperative advertising fee. This fee will not exceed 0.5% of Program Sales. This is in addition to the advertising fund fee equal to 0.5% of your Program Sales that all franchisees must pay.
Body Brain Center has the right to allocate any portion of the advertising fund fees to an advertising cooperative and determine the composition of geographic territories and market areas for each cooperative. The boundaries of an advertising cooperative will generally coincide with a city's metropolitan area.
Body Brain Center also has the right to establish an advertising council to self-administer the cooperative or administer the cooperative themselves. Franchisees must participate in the council according to its rules and procedures and abide by its decisions. Advertising cooperatives are not required to operate from written governing documents but will prepare annual or periodic financial statements, which will be made available to franchisees within the cooperative upon request. Body Brain Center reserves the right to form, change, merge, or dissolve advertising cooperatives at its discretion.