Does Body Brain Center have an obligation to create advertising cooperatives?
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 Body Brain Center's 2025 Franchise Disclosure Document, Body Brain Center does not have an explicit obligation to create advertising cooperatives. However, the document outlines the possibility of advertising cooperatives and how they function.
Franchisees are required to pay an initial cooperative advertising fee equal to 0.5% of Program Sales. This fee can be adjusted, temporarily suspended, or eliminated altogether upon a majority vote of all franchisees within the advertising cooperative. If Body Brain Center or its affiliate operates a majority of the Body & Brain Centers within the cooperative, increasing the cooperative advertising fee requires the consent of all franchisees within the cooperative.
Body Brain Center will collect all cooperative advertising fees and pay them to the applicable advertising cooperative unless Body Brain Center administers the advertising cooperative themselves. This structure allows for a degree of franchisee control over local advertising spend, but the ultimate decision-making power may depend on the composition of the cooperative and Body Brain Center's involvement.