To which fund may Best Brains require a franchisee to pay unexpended local advertising amounts?
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, if a franchisee does not spend the required amount on local advertising and promotions, Best Brains may require the franchisee to pay the unexpended amounts to the Brand Development Fund.
Best Brains requires franchisees to spend at least $250 per month, expending it quarterly on local advertising and promotions of the franchised business and the Marks in each fiscal year. These expenditures must be deemed appropriate by Best Brains to meet the minimum advertising requirements. Items considered inappropriate include payments in connection with permanent on-premises signs, lighting, or purchasing/maintaining vehicles, even if they display the Marks.
Best Brains retains the right to review a franchisee's books and records to determine if the required advertising and promotion expenditures have been met. If Best Brains determines that a franchisee has not spent the requisite amount, they can demand that the unexpended funds be paid into the Brand Development Fund. This ensures that all franchisees contribute adequately to local advertising efforts, even if they initially fall short of the required spending.