factual

When does the gross revenue threshold of $350,000 apply to a Brain Balance franchise?

Brain_Balance Franchise · 2025 FDD

Answer from 2025 FDD Document

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)

Based on the 2025 Franchise Disclosure Document, Brain Balance franchisees are required to spend a minimum of $6,000 per calendar month on local advertising or nine percent of their gross revenue, whichever is greater. This means that if a franchisee's gross revenue reaches approximately $66,667 in a given month, their local advertising expenditure would be 9% of that revenue, equating to about $6,000, meeting the minimum spending requirement. However, the provided excerpts do not specify a gross revenue threshold of $350,000 that triggers a particular obligation or condition for Brain Balance franchisees.

While the FDD excerpts detail the franchisee's obligations for advertising and royalty payments based on gross revenue, they do not mention any specific implications related to reaching a $350,000 gross revenue threshold. The documents outline the calculation of advertising contributions and royalties as percentages of gross revenue, with minimum monthly payments, but no mention of a $350,000 threshold affecting these calculations or other aspects of the franchise agreement.

Therefore, a prospective Brain Balance franchisee should inquire with the franchisor about whether a $350,000 gross revenue threshold exists and what implications it might have on their franchise agreement, financial obligations, or operational requirements. This information is not available in the provided FDD excerpts, so direct clarification from Brain Balance is necessary to fully understand any potential impact of reaching this revenue level.

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.