Are Brain Balance franchisees considered third-party beneficiaries of the Advertising Fund?

According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are explicitly not considered third-party beneficiaries of the Advertising Fund. The FDD states that neither franchisees nor any other franchise owners who contribute to the Advertising Fund have any right to enforce any obligation related to it. This means that while franchisees are required to contribute to the fund, they do not have legal standing to challenge or influence how Brain Balance manages or spends the money.

Brain Balance retains sole discretion over how the Advertising Fund is spent, and these expenditures may benefit any of the Brain Balance marks. The company is not obligated to spend the entire fund in any given calendar year. Furthermore, Brain Balance has the right to determine the nature, scope, content, territory, form, media, and budget of advertising and promotion programs.

This arrangement gives Brain Balance significant control over the Advertising Fund, allowing them to direct marketing efforts as they see fit. However, it also means that franchisees have limited recourse if they disagree with the company's decisions regarding the fund's use. Prospective franchisees should carefully consider this aspect and understand that their contributions to the Advertising Fund do not grant them any direct control or legal rights over its management or expenditure.