Membership: Limit Group creation on BuddyPress not working

How does the "Limit Group creation" work on BuddyPress?

The site I am using has a custom template and we have hard coded a link to "Create Group" in our menu. I have limited the group creation to 1 per user, however, it appears that users can still create unlimited groups.

What can be done to make it 1 per user? Do we have to remove the hard link from "Create Group"? I am not a developer, but we have a developer doing the work, I just want to know what they have to do to make use of this limit group creation feature, or if there is possibly some kind of bug.

Best,
Michael