Who has the discretion to make expenditures from the Brain Balance Advertising Fund?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
ution to the Advertising Fund beginning that month.
- (c) Contributions to the Advertising Fund from FRANCHISEE and all other franchisees shall be maintained by COMPANY in a single segregated account designated for that purpose. The proceeds of the Advertising Fund shall be expended at the discretion of COMPANY for national and/or regional advertising, public relations, dissemination of research results achieved through approved research facilities, the Brain Balance® Foundation and other charitable activities, Web site and other electronic media development, and/or promotion of the Center businesses conducted under the Marks and publications relating to the Brain Balance Program®, and the payment of fees, costs, and other charges pertaining to such activities, including but not limited to COMPANY's administrative expenses associated with the foregoing.
- FRANCHISEE acknowledges that proceeds of the Advertising Fund are intended to be used to maximize general public awareness of the Brain Balance Program® for the benefit of the System as a whole. No representation is made by COMPANY, and FRANCHISEE acknowledges that expenditures from the Advertising Fund may not result in a proportionate or any advertising effort in a particular geographical area, including FRANCHISEE's Territory, or that FRANCHISEE will benefit directly from any expenditures from the Advertising Fund. FRANCHISEE acknowledges and agrees that neither FRANCHISEE nor any other franchise owners of COMPANY who shall be obligated to contribute to the Advertising Fund shall be deemed a third-party beneficiary with respect to said Advertising Fund or have any right to enforce any obligation to contribute thereto. Expenditures from the Advertising Fund shall be made at the sole discretion of COMPANY and may be for the benefit of any one or more of the Marks. COMPANY shall not be required to expend the entire Advertising Fund during any calendar year. COMPANY shall have the right to determine the nature, scope, and content of advertising and promotion programs; the 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
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the Company has the sole discretion regarding expenditures from the Advertising Fund. This fund is supported by franchisee contributions, which are set at 2% of Gross Revenue, with a minimum of $200 due monthly. These contributions are maintained by Brain Balance in a segregated account.
The funds can be used for national or regional advertising, public relations, research dissemination, charitable activities like the Brain Balance® Foundation, website and electronic media development, promotion of Center businesses, publications related to the Brain Balance Program®, and the payment of associated fees and administrative expenses. Brain Balance aims to maximize public awareness of the Brain Balance Program® for the benefit of the entire system through these expenditures.
It's important to note that Brain Balance franchisees may not always see direct benefits in their specific geographical area from these advertising expenditures. Franchisees are also required to spend a minimum of $6,000 per calendar month or 9% of their Gross Revenue, whichever is greater, on local advertising, as directed by Brain Balance. This local advertising requirement is separate from the Advertising Fund contributions. Franchisees do not have third-party beneficiary rights with respect to the Advertising Fund, meaning they cannot enforce any obligation to contribute to it.