What determines the minimum amount of local advertising a Brain Balance franchisee must conduct?
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, a franchisee's minimum local advertising spend is determined by a calculation based on gross revenue or a fixed dollar amount, whichever is greater. Specifically, franchisees must spend at least $6,000 per calendar month or 9% of their gross revenue on local advertising. This advertising must be conducted in accordance with Brain Balance's directions regarding the allocation of funds across various marketing channels.
This requirement has significant implications for franchisees. In months where a center's gross revenue is low, the franchisee must still spend $6,000 on local advertising. Conversely, as a center's revenue grows, the advertising expenditure will increase proportionally, potentially leading to a larger advertising budget than the fixed minimum. This ensures that advertising efforts scale with the business's success, but it also means franchisees must be prepared for fluctuating advertising expenses.
Furthermore, if Brain Balance recommends an Advertising Cooperative in the franchisee's designated marketing area and one is established, the franchisee is required to join and contribute to it. Payments made to the media fund for the Advertising Co-op can be applied toward the franchisee's local advertising obligations, providing a potential avenue for collaborative and potentially more effective advertising efforts. However, these Advertising Co-ops are independently run by franchisees and not under the direct control of Brain Balance itself.