What is the minimum amount a Best Brains franchisee must spend quarterly 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 must spend a minimum of $250 per month on local advertising and promotions, which translates to $750 per quarter. This expenditure is required each fiscal year of the company.
Notably, any advertising expenditures exceeding the minimum requirement in one fiscal year cannot be credited towards the minimum advertising requirements in subsequent years. Best Brains retains the right to review a franchisee's financial records to verify compliance with these advertising expenditure requirements. If a franchisee fails to meet the minimum spending threshold, Best Brains may require the franchisee to remit the unspent funds to the Brand Development Fund.
It is important to note that not all payments qualify as advertising expenditures. Best Brains has the discretion to deem certain items as inappropriate for meeting the minimum advertising requirements. Examples of such excluded items include payments for permanent on-premises signs, lighting, and the purchase or maintenance of vehicles, even if those vehicles display Best Brains' trademarks.