What is the purpose of the advertising fund for Body Brain Center?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) We have established and maintain an advertising fund for marketing, advertising and promotional materials, public and consumer relations, publicity, and other programs that we may deem necessary or appropriate in our sole discretion.
You will have no voting rights pertaining to the administration of the advertising fund, the creation and placement of the marketing materials or the amount of the advertising fund fee.
- (6) We may establish regional advertising cooperatives for purposes of pooling advertising funds to be used in discrete regions.
We will collect the cooperative advertising fees and remit these fees to the applicable advertising cooperative (unless we administer the advertising cooperative ourselves).
The amount of the cooperative advertising fee may be adjusted (or temporarily suspended) upon the majority vote of all franchisees within the advertising cooperative.
Any Body & Brain Center that we operate will have the same voting power as third party franchisees.
If we own the majority of Body & Brain Centers within an advertising cooperative, we will not increase the cooperative advertising fee without the consent of a majority of all third-party Body & Brain Center franchisees within the advertising cooperative.
All cooperative advertising fees will be uniformly imposed on all franchisees within the advertising cooperative, including any Body & Brain Center that we operate.
Source: Item 6 — OTHER FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, the advertising fund is used for marketing, advertising and promotional materials, public and consumer relations, publicity, and other programs deemed necessary by the franchisor. The franchisee has no voting rights regarding the administration of the fund, the creation and placement of marketing materials, or the amount of the advertising fund fee.
Body Brain Center may establish regional advertising cooperatives where advertising funds are pooled for use in specific regions. The cooperative advertising fees are collected and remitted to the applicable advertising cooperative, unless Body Brain Center administers the cooperative themselves. The amount of the cooperative advertising fee can be adjusted or temporarily suspended by a majority vote of all franchisees within the advertising cooperative.
Notably, any Body Brain Center that the franchisor operates has the same voting power as third-party franchisees. If the franchisor owns the majority of Body Brain Centers within a cooperative, they will not increase the cooperative advertising fee without the consent of a majority of all third-party franchisees within the cooperative. All cooperative advertising fees are uniformly imposed on all franchisees within the advertising cooperative, including any Body Brain Center that the franchisor operates. Additionally, fines imposed on franchisees for non-compliance with standards or failure to follow complaint resolution processes are deposited into the advertising fund.