factual

Is the Brain Balance franchisee's contribution to the Advertising Fund refundable?

Brain_Balance Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (a) FRANCHISEE shall participate and contribute to the advertising fund ("Advertising Fund") that has been established by COMPANY for the benefit of all BBF franchisees and Company-operated Centers.
  • (b) FRANCHISEE's non-refundable contribution to the Advertising Fund shall be in an amount equal to two percent (2%) of Gross Revenue as defined in 6.01, with a minimum of $200 due monthly hereunder, and the contribution is due and payable in the same manner and at the same time as the Royalty. If the Center is n

Source: Item 22 — CONTRACTS (FDD pages 70–72)

What This Means (2025 FDD)

According to Brain Balance's 2025 Franchise Disclosure Document, the franchisee's contribution to the Advertising Fund is non-refundable. The franchisee is required to contribute to the Advertising Fund, which Brain Balance has established for the benefit of all franchisees and company-operated centers.

The franchisee's contribution is set at two percent of Gross Revenue, with a minimum of $200 due monthly. This contribution is due and payable in the same manner and at the same time as the royalty payments. Even if the center is not opened by the tenth month following the franchise agreement date, the franchisee is still obligated to begin contributing to the Advertising Fund at that time.

The funds collected are maintained by Brain Balance in a segregated account and are used at their discretion for national or regional advertising, public relations, research dissemination, charitable activities like the Brain Balance® Foundation, website and electronic media development, and promotion of the Brain Balance Program®. Franchisees acknowledge that these expenditures are intended to maximize general public awareness of the Brain Balance Program® for the benefit of the entire system. Franchisees are not considered third-party beneficiaries with respect to the Advertising Fund and have no right to enforce contributions to it.

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.