Besides the Brand Development Fund and grand opening expenditures, what other advertising expenditure obligations do Best Brains franchisees have?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
u are granted the rights to the number we have the right to ask for the rights upon termination or transfer. You acknowledge that we shall have the sole rights to and interest in all such telephone numbers.
- (i) We shall notify the you of monthly of the cost of such telephone service and you shall, within five days of receipt of such a bill, reimburse us for our costs in maintaining telephone numbers for the Franchised Business.
- (ii) If you do not so reimburse us, we may instruct the telephone service provider to terminate such telephone number(s) or to transfer such number(s) to us or our designee.
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- Grand Opening. Before opening your Franchised Business, you must spend a minimum of $14,000 on local advertising, marketing and promotion of the opening of the Franchised Business in accordance with an opening marketing plan approved by us. These grand opening expenditures are in addition to the Brand Development Fund contributions specified above.
We may require you to pay to the Brand Development Fund at the time of the "open house" before the scheduled opening of the Franchised Business these amounts which we will then spend for local advert
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, franchisees are required to spend a minimum of $250 per month on local advertising and promotions. This expenditure is mandated quarterly and must be used for advertising and promoting the Best Brains franchise and its trademarks. These local advertising expenditures are separate from the Brand Development Fund contributions and the grand opening advertising expenses.
Best Brains has the right to audit a franchisee's financial records to verify compliance with the local advertising expenditure requirement. If a franchisee fails to meet the minimum spending requirement, Best Brains can demand that the unspent funds be paid into the Brand Development Fund. This ensures that all franchisees contribute adequately to local marketing efforts, and that Best Brains maintains control over advertising standards.
It is important to note that not all expenses qualify as advertising expenditures. Best Brains specifies that certain items, such as permanent on-premises signs, lighting, and vehicle-related costs, are not considered valid advertising expenses for meeting the minimum requirement. Franchisees must seek approval for advertising materials not already provided or approved by Best Brains, and failure to receive written approval within fourteen days results in automatic disapproval. This ensures that all advertising aligns with Best Brains' brand standards and marketing strategies.