factual

Is a Brain Balance franchisee required to retain evidence of local advertising expenditures for submission to the company?

Brain_Balance Franchise · 2025 FDD

Answer 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

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, but the document does not explicitly state that franchisees must submit evidence of these expenditures to the company. The franchisee is obligated to spend a minimum of $6,000 per calendar month or 9% of gross revenue, whichever is greater, on local advertising, following the company's directions regarding allocation among various marketing channels.

While the FDD outlines the spending requirements and the franchisor's control over advertising materials and vendor selection, it does not specify a mandatory reporting or submission process for documenting local advertising expenses. The franchisor maintains the right to approve advertising and promotional materials, and marketing vendors, suggesting a level of oversight in this area.

Therefore, while franchisees must adhere to the local advertising spending requirements and obtain approval for advertising materials, the FDD does not explicitly require them to submit evidence of their advertising expenditures to Brain Balance. A prospective franchisee should clarify with Brain Balance whether they need to provide proof of these expenditures and what form that proof should take.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.