Is a Brain Balance franchisee required to retain evidence of advertising expenditures?
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)
The 2025 Brain Balance Franchise Disclosure Document states that franchisees are required to spend a minimum amount on local advertising, specifically $6,000 per calendar month or 9% of gross revenue, whichever is greater. This advertising must be done according to Brain Balance's directions regarding allocation among various marketing channels.
If Brain Balance recommends an Advertising Cooperative in the franchisee's designated marketing area and one is established, the franchisee must join and contribute to it. Payments to the media fund for the Advertising Co-op will count toward the franchisee's local advertising obligations.
While the FDD specifies required advertising expenditures and the approval process for advertising materials, it does not explicitly state that a franchisee must retain evidence of these expenditures. A prospective franchisee should seek clarification from Brain Balance on whether they are required to keep records or provide proof of their advertising spending to ensure compliance with the franchise agreement.