What is the minimum amount a Best Brains franchisee must spend on local advertising and promotions each year?
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, totaling $3,000 annually. These expenditures must occur each fiscal year of the company. This is in addition to payments to the Brand Development Fund and the grand opening expenditures.
Best Brains has the right to review a franchisee's financial records to verify these advertising and promotion expenditures. 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. However, any amount spent above the minimum in one fiscal year cannot be credited towards the minimum requirement in any subsequent year.
It is important to note that not all payments qualify as advertising expenditures. Best Brains deems certain items as inappropriate for meeting the minimum advertising requirements. These include payments for permanent on-premises signs, lighting, and the purchase or maintenance of vehicles, even if those vehicles display Best Brains' trademarks. Franchisees must ensure their advertising spend aligns with Best Brains' criteria to avoid penalties.