If Body Brain Center receives rebates from suppliers, where will those rebates be deposited?

According to Body Brain Center's 2025 Franchise Disclosure Document, if Body Brain Center receives rebates, payments, or other material benefits from vendors based on franchisee purchases, these funds will be deposited into the advertising fund. This means that any financial benefits Body Brain Center gains from supplier relationships tied to franchisee purchases are earmarked to support advertising and marketing efforts for the benefit of the franchise system.

For a prospective Body Brain Center franchisee, this arrangement implies that they may not directly benefit from any rebates or payments the franchisor receives from suppliers. Instead, these funds are pooled into the advertising fund, which is intended to promote the Body Brain Center brand and attract more customers to all franchise locations. While franchisees may not see a direct reduction in their costs due to these rebates, the expectation is that the advertising fund will enhance brand awareness and drive business to their centers.

It's worth noting that the FDD also states that Body Brain Center did not receive any revenues based on franchisee purchases from approved or designated suppliers in the fiscal year ended December 31, 2024. However, the document reserves the right for Body Brain Center to designate themselves as an approved or designated supplier in the future, which could then generate revenues from these purchases. Franchisees should monitor any changes to approved supplier lists and understand how these changes might impact the advertising fund and overall marketing strategy.