What happens if a Best Brains franchisee does not spend the required amount on local advertising?
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, or $750 quarterly, on local advertising and promotions. Best Brains has the right to review a franchisee's financial records to verify these expenditures.
If Best Brains determines that a franchisee has not met the required advertising expenditure, they may require the franchisee to pay the unspent amount to the Brand Development Fund. This means that a franchisee who fails to invest adequately in local advertising could be compelled to contribute the deficit to the Brand Development Fund, effectively losing control over how those funds are used for marketing.
It is important to note that not all expenditures qualify as advertising expenses. Payments for permanent on-premises signs, lighting, or vehicles (even those displaying Best Brains' branding) are examples of expenses that Best Brains may deem inappropriate for meeting the minimum advertising requirements. Therefore, franchisees must ensure their advertising spending aligns with Best Brains' guidelines to avoid penalties.