Does Body Brain Center have the right to merge advertising cooperatives?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
dissolve advertising cooperativesin our discretion. You must pay the monthly cooperative 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. 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.
- 9.5 Online Payment Program. We have implemented a program pursuant to which we will allow existing, new, or potential customers to pay for Introductory Class sessions, Trial Class sessions, Group Classes, and Private Classes through our website or a third-party website (the "Online Payment Program"). You agree to participate in the Online Payment Program. By participating, you agree that: (i) we will list your Center on our website or a third-party website as a Body and Brain Center that is participating in the Online Payment Program; (ii) we will allow existing, new, or potential customers of your Center to purchase Introductory Class sessions (introductory one-on-one sessions), Trial Class sessions (introductory group classes), Group Classes, or Private Classes through our website or a thirdparty website by electronic payment; and (iii) we may offer a discount for online payment, provided that the minimum required payment will be equal to or exceed 50% of our then-current suggested retail pricing for Introductory Class sessions, Trial Class sessions, Group Classes, or Private Classes, as applicable. The electronic payments made by customers through the Online Payment Program (referred to as "Online Payment Proceeds") attributable to purchases of Introductory Class sessions, Trial Class sessions, Group Classes, and Private Classes at your Center will be included in your reporting of Program Sales.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
Based on the 2025 Body Brain Center Franchise Disclosure Document, the document does not explicitly state whether Body Brain Center has the right to merge advertising cooperatives. However, it does outline some key aspects of advertising and marketing.
The FDD mentions that the initial cooperative advertising fee is 0.5% of Program Sales. Franchisees within an advertising cooperative can adjust or eliminate this fee with a majority vote. However, if Body Brain Center or its affiliate operates a majority of the centers within the cooperative, increasing the fee requires consent from all franchisees in the cooperative. Body Brain Center collects these fees and pays them to the advertising cooperative, unless Body Brain Center administers the cooperative itself.
The document also states that franchisees must pay an advertising fund fee equal to 0.5% of their Program Sales, which Body Brain Center deposits into the advertising fund. Body Brain Center will provide a standardized marketing plan and may offer advertising materials, but franchisees are responsible for printing costs if the materials are provided online.
Since the FDD does not directly address the merging of advertising cooperatives, it would be prudent for a prospective franchisee to seek clarification from Body Brain Center regarding their policies and rights related to advertising cooperatives, including any potential for mergers or consolidations.