What are the consequences if a Best Brains franchisee does not meet the minimum local advertising expenditure requirements?
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 the 2025 Best Brains Franchise Disclosure Document, franchisees are required to spend a minimum of $250 per month on local advertising and promotions each fiscal year. These expenditures must be used for advertising and promoting the Best Brains franchise and its trademarks. However, the FDD specifies that certain payments, such as those for permanent signs, lighting, or vehicles, are not considered valid advertising expenditures.
If Best Brains determines that a franchisee has not met the minimum advertising expenditure requirement, they have the right to review the franchisee's books and records. If a franchisee fails to spend the required amount on local advertising, Best Brains may require the franchisee to pay the unexpended amount to the Brand Development Fund.
It's important to note that any advertising expenditures exceeding the minimum requirement in one fiscal year cannot be credited towards the minimum advertising requirements for any other fiscal year. This means franchisees must consistently meet the minimum spending each year and cannot overspend in one year to compensate for underspending in another.