What is the current intended use of the Body Brain Center advertising fund?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
We have established and administer an advertising fund. We administer a single advertising fund for Body & Brain home-based franchisees and Body & Brain Center franchisees. The advertising fund will be used for local, regional or national marketing, advertising, sales promotion and promotional materials, public and consumer relations, publicity, website development,search engine optimization and any other programs that we deem necessary or appropriate. Currently, we intend to use the advertising fund to further develop the publicly accessible Body & Brain website to promote the brand and Body & Brain Centers and Body & Brain home-based franchises. The advertising fund may also be used to pay for the creation of marketing materials that our franchisees may use for local marketing purposes.
Source: Item 11 — FRANCHISOR'S ASSISTANCE**, ADVERTISING, **COMPUTER SYSTEMS AND TRAINING (FDD pages 20–29)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, the advertising fund is intended to further develop the publicly accessible Body & Brain website to promote the brand, Body & Brain Centers, and Body & Brain home-based franchises. The advertising fund may also cover the creation of marketing materials for franchisees' local marketing efforts. This fund is administered to maximize public recognition and patronage of the Body & Brain system, benefiting both the franchisor and franchisees.
The franchisor has complete control and discretion over all advertising programs, including creative concepts, materials, endorsements, and media used. While the FDD anticipates that advertising will primarily consist of Internet ads and brochures, Body Brain Center does not assume any direct or indirect liability regarding the advertising fund's maintenance, direction, or administration. The advertising fund is not a trust, and the franchisor has no fiduciary obligations in its administration.
An unaudited financial accounting of the advertising fund's operations will be prepared annually and made available to franchisees upon request. Franchisees contribute to the advertising fund through a fee equal to 0.5% of their Program Sales. The franchisor may form advertising cooperatives, requiring franchisees within those regions to pay a cooperative advertising fee, not exceeding 0.5% of Program Sales.
For Body Brain Center franchisees, this means contributing to a fund that aims to boost brand visibility and provide marketing resources. However, franchisees should be aware that the franchisor has significant control over the fund's usage and is not held to fiduciary obligations. Franchisees should regularly request and review the advertising fund's financial statements to stay informed about its operations.