For what purpose are advertising fund fees restricted at Body Brain Center?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
perative advertising fee established by us or the council, as applicable, which will be due on the sixth (6 th) day of each month for the prior month's operations. 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.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, the advertising cooperative fee can be adjusted, temporarily suspended, or eliminated altogether upon a majority vote of all franchisees within the cooperative. However, if Body Brain Center or its affiliate operates a majority of the centers within the cooperative, increasing the cooperative advertising fee requires the consent of all franchisees in the cooperative.
This condition ensures that Body Brain Center franchisees have a voice in how advertising funds are spent, especially in cases where the franchisor has significant control over the cooperative. This protects franchisees from potentially disproportionate advertising costs or strategies that may not benefit all members equally. The initial cooperative advertising fee is 0.5% of Program Sales.
This type of safeguard is relatively common in franchising, as it aims to balance the franchisor's need for system-wide marketing with the individual franchisees' interests and financial well-being. Prospective franchisees should inquire about the historical operation of the advertising cooperative and any past instances where these restrictions have been invoked.