What happens to the money collected from fines imposed by Body Brain Center?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- (11) We may impose a fine only if (i) you do not comply with our standards and you fail to correct the noncompliance within the required corrective period or (ii) you receive a customer complaint and fail to follow our complaint resolution process. All fines will be deposited into the advertising fund.
- (12) We may charge the late fee on all overdue amounts under the Franchise Agreement. If the Franchise Agreement does not specify a due date, interest begins to accrue 10 days after billing. If there are sufficient funds in your designated checking account to cover all amounts due us as these amounts become due and you provide us with reports of Program Sales and record sales on a timely basis, you will not be charged a late fee.
Source: Item 6 — OTHER FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, the fines collected from franchisees are deposited into the advertising fund. Body Brain Center may impose a fine if a franchisee does not comply with their standards and fails to correct the noncompliance within the required corrective period, or if a franchisee receives a customer complaint and fails to follow the complaint resolution process.
The advertising fund is used for marketing, advertising and promotional materials, public and consumer relations, publicity, and other programs that Body Brain Center deems necessary or appropriate. Franchisees have no voting rights pertaining to the administration of the advertising fund, the creation and placement of marketing materials, or the amount of the advertising fund fee.
The FDD also specifies that fines can be up to $500 per incident, with a maximum of $2,500 for the same violation. These fines are due 10 days after billing. This means that Body Brain Center franchisees could face financial penalties for failing to meet the franchisor's standards or properly address customer complaints, and these funds will be used to support advertising and marketing efforts for the Body Brain Center brand.