How does Body Brain Center administer the advertising fund, as mentioned in the FDD?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ministration of the advertising fund. A financial accounting of the operations of the advertising fund, including deposits into and disbursements from the advertising fund, will be prepared annually and made available to you upon request.
- (b) Contributions from You and Us. On the sixth (6 th) day of each month, you must pay us an advertising fund fee equal to 0.5% of your Program Sales for the prior month's operations. We will deposit into the advertising fund all: (i) advertising fund fees paid by you and other franchisees (unless we allocate the fees to an advertising cooperative); (ii) fines paid by you and other franchisees; and (iii) rebates or other payments we receive from suppliers based on franchisee purchases. Any company-owned Body & Brain Center or Body & Brain home-based business will contribute to the advertising fund on the same basis as our franchisees. However, if we modify the amount or timing of the contributions that must be made to the advertising fund, any company-owned Body & Brain Center or Body & Brain home-based business that is established or acquired after the modification may contribute to the advertising fund utilizing the modified amount or timing. Except as stated in this Section, we have no obligation to expend our own funds or resources for any Advertising Campaign.
- 9.2 Marketing Assistance From Us. We will provide you with a standardized marketing plan for your Business. The marketing plan will be included in the Manual. We may create and make available to you advertising and other marketing materials at no additional charge. We may make these materials available over the Internet (in which case you must arrange for printing the materials and paying all printing costs). Alternatively, we may enter into relationships with third party suppliers who will create the advertising or marketing materials for your purchase. We will provide reasonable marketing consulting, guidance and support throughout the Term on an as needed basis.
9.3 Your Marketing Activities
- (a) Generally. Although you are encouraged to engage in local advertising, you are not required to spend any minimum amount on local advertising to promote your Business. However, you must participate at your own expense in all advertising, promotional and marketing programs that we require. All advertisements and promotions that you create or use must be completely factual and conform to the highest standards of ethical advertising and comply with all federal, state and local laws. You must ensure that your advertisements and promotional materials do not infringe upon the intellectual property rights of any person.
- (b) Approval of Advertising.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body Brain Center Franchise Disclosure Document, franchisees must pay an advertising fund fee equal to 0.5% of their Program Sales on the sixth day of each month. Body Brain Center deposits advertising fund fees from franchisees, fines paid by franchisees, and rebates or payments from suppliers based on franchisee purchases into the advertising fund. Company-owned Body & Brain Centers contribute to the advertising fund on the same basis as franchisees, although Body Brain Center can modify the contribution amount or timing for company-owned centers established or acquired after a modification. Body Brain Center is not obligated to expend its own funds for advertising campaigns, except as stated in the FDD.
Body Brain Center will provide franchisees with a standardized marketing plan included in the Manual. They may also create and provide advertising and marketing materials at no additional charge, potentially making these materials available online for franchisees to print at their own cost or through third-party suppliers. Body Brain Center also commits to providing reasonable marketing consulting, guidance, and support throughout the term of the franchise agreement.
In addition to the general advertising fund, franchisees may also participate in an advertising cooperative, with an initial fee of 0.5% of Program Sales. The cooperative advertising fee can be adjusted, temporarily suspended, or eliminated based on a majority vote of franchisees within the cooperative. However, if Body Brain Center or an affiliate operates a majority of the Body & Brain Centers within the cooperative, increasing the cooperative advertising fee requires the consent of all franchisees in the cooperative. Body Brain Center collects all cooperative advertising fees and pays them to the advertising cooperative, unless Body Brain Center administers the cooperative themselves.