Will contributions to the Brain Balance Advertising Fund be maintained in an account separate from other monies?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
Your contributions are payable to the Advertising Fund, will be maintained in an account separate from our other monies, and will not be used to defray any of our expenses. Separate bookkeeping accounts will be maintained for the Advertising Fund. We will use any unused monies in the Advertising Fund at the end of the year in the next fiscal year(s). We do not use any money from the Advertising Fund for marketing that is principally a solicitation for the sale of franchises (Franchise Agreement Section 6.02).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM, AND TRAINING (FDD pages 36–47)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisee contributions to the Advertising Fund will be kept separate from the franchisor's other funds. Specifically, franchisee advertising payments are payable to the Advertising Fund, will be maintained in an account separate from Brain Balance's other monies, and will not be used to defray any of their expenses. This arrangement ensures that the advertising fees paid by franchisees are used specifically for advertising and promotional activities. Separate bookkeeping accounts will be maintained for the Advertising Fund.
The FDD also states that any unused monies in the Advertising Fund at the end of the year will be used in the subsequent fiscal year(s). Furthermore, Brain Balance confirms that no money from the Advertising Fund is used for marketing that primarily solicits the sale of franchises.
While Brain Balance's annual financial audit includes the Advertising Fund, franchisees will not receive a copy of the audit. However, Brain Balance will provide an annual summary of Advertising Fund expenditures to each franchisee. If a franchisee requires a more extensive accounting and is legally entitled to it, they can make a written request, and Brain Balance will provide it within 30 business days.