For what purpose are Body Brain Center advertising fund fees restricted?
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, the use of cooperative advertising fees can be adjusted or eliminated based on the vote of franchisees within the cooperative. Specifically, the initial cooperative advertising fee is set at 0.5% of Program Sales. This fee can be adjusted, temporarily suspended, or entirely eliminated through a majority vote of all franchisees participating in the advertising cooperative.
However, there's a condition that protects franchisees' interests when Body Brain Center or its affiliates operate a majority of the centers within the cooperative. In such cases, the cooperative advertising fee can only be increased with the consent of all franchisees within the advertising cooperative, ensuring that the franchisor cannot unilaterally raise the fees.
Body Brain Center will collect all cooperative advertising fees and distribute them to the relevant advertising cooperative, unless Body Brain Center itself manages the advertising cooperative. This ensures that the fees are directed towards advertising and marketing efforts, although the specific details of how these funds are used are not detailed in this excerpt.