Do company-owned Body Brain Centers contribute to the advertising fund, and if so, on what basis?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, company-owned centers do contribute to the advertising fund. Specifically, any company-owned Body & Brain Center or Body & Brain home-based business will contribute to the advertising fund on the same basis as franchisees. This contribution is based on 0.5% of the center's Program Sales for the prior month's operations. This payment is due on the sixth day of each month.
This arrangement ensures that company-owned locations share in the responsibility of funding advertising efforts, aligning their interests with those of the franchisees. However, the document also states that if Body Brain Center modifies the amount or timing of contributions to the advertising fund, any company-owned center established or acquired after the modification may contribute utilizing the modified amount or timing. This implies that there could be different contribution terms for company-owned centers depending on when they were established or acquired.
For a prospective franchisee, this means that the advertising fund is supported by both franchisee and company-owned center contributions, potentially increasing the overall advertising budget. However, it is important to note the potential for differing contribution terms for company-owned centers established or acquired after any modifications to the contribution terms. A prospective franchisee should seek clarification from Body Brain Center regarding any planned or existing variations in advertising fund contributions between franchised and company-owned locations.