What determines the minimum amount a Brain Balance franchisee must spend on local advertising?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
he territory in which they are to appear; the form thereof; the media and the budget therefore; and all other relevant decisions regarding the implementation of such advertising and promotion programs.
- (e) FRANCHISEE shall spend a minimum of $6,000 per calendar month or nine percent (9.0%) of its Gross Revenue, whichever is greater, for local advertising in accordance with COMPANY's direction as to allocation among various marketing channels.
- (f) If FRANCHISOR recommends an Advertising Cooperative ("Advertising Co-op") in FRANCHISEE's designated marketing area ("DMA") and one is established, FRANCHISEE shall join it by executing the applicable by-laws, and shall contribute at least the amount set forth in Section 6.07. FRANCHISEE's payments to the media fund for the Advertising Co-op will apply toward satisfaction of FRANCHISEE's obligati
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are required to spend a minimum amount on local advertising. This minimum is determined by whichever is greater between a fixed dollar amount and a percentage of the franchisee's gross revenue.
Specifically, a Brain Balance franchisee must spend at least $6,000 per calendar month or 9.0% of their Gross Revenue, whichever of the two amounts is higher. This local advertising spending must align with the company's directions regarding allocation across various marketing channels. This means Brain Balance has some control over how franchisees allocate their local advertising budgets.
If Brain Balance recommends an Advertising Cooperative in the franchisee's designated marketing area and one is established, the franchisee is obligated to join it. The franchisee must contribute at least the amount set forth in Section 6.07 of the franchise agreement. Payments made to the media fund for the Advertising Co-op can be applied toward the franchisee's local advertising obligations. It is important to note that these Advertising Co-ops are independently run by franchisees within a DMA and are not controlled by Brain Balance itself.