Is the Brain Balance company required to expend the entire Advertising Fund during any calendar year?

According to Brain Balance's 2025 Franchise Disclosure Document, Brain Balance is not required to spend the entire advertising fund in any calendar year. The FDD states that expenditures from the Advertising Fund are made at the sole discretion of Brain Balance and may benefit any of the Marks. Brain Balance determines the nature, scope, and content of advertising and promotion programs, including the territory, form, media, and budget.

This means that franchisees cannot demand that Brain Balance spend the advertising funds in a specific way or within a specific timeframe. The funds can be used for national or regional advertising, public relations, research, charitable activities such as the Brain Balance® Foundation, website development, and promotion of the centers.

This clause gives Brain Balance significant flexibility in managing the advertising fund, but it also means that franchisees have less control over how their contributions are spent. Franchisees are required to contribute to the advertising fund, with the amount being two percent (2%) of Gross Revenue, with a minimum of $200 due monthly. Franchisees also have local advertising obligations, requiring them to spend a minimum of $6,000 per calendar month or nine percent (9.0%) of their Gross Revenue, whichever is greater, for local advertising.