What was the advertising expense for Brain Balance in 2022, exclusive of the franchisee advertising fund?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
Income Taxes*
The Company is treated as a partnership for federal income tax purposes. Consequently, federal income taxes are not payable or provided for by the Company. The member is taxed individually on its pro rata ownershi
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the company's advertising expense, not including the franchisee advertising fund, was $104,885 in 2022. This figure represents the franchisor's direct spending on advertising initiatives during that year.
This information is useful for prospective franchisees as it provides insight into Brain Balance's investment in brand promotion and marketing at the corporate level. It's important to note that this figure is separate from the advertising fees collected from franchisees, which are earmarked for a separate advertising fund. Franchisees should consider this amount when evaluating the overall marketing support they can expect from the franchisor.
Understanding the breakdown between corporate advertising expenses and the franchisee advertising fund is crucial. Franchisees typically contribute a percentage of their gross sales to the advertising fund, which is then used for marketing activities. The corporate advertising expense reflects Brain Balance's additional investment in promoting the brand, which can benefit all franchisees by increasing brand awareness and attracting more customers.