When does the gross revenue threshold apply to a Brain Balance franchise?
Brain_Balance Franchise · 2025 FDDAnswer 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, franchisees must contribute to the Advertising Fund. The contribution is 2% of Gross Revenue, with a minimum of $200 due monthly. This payment is due at the same time and in the same manner as the royalty payments.
If a Brain Balance center has not opened by the tenth month following the franchise agreement date, the franchisee is required to begin contributing to the Advertising Fund at the 2% gross revenue (minimum $200) that month. This means that even if the center is not yet operational, the franchisee is still obligated to contribute to the Advertising Fund starting in the tenth month.
This policy ensures that Brain Balance has consistent funding for advertising efforts, even if a franchise is delayed in opening. Prospective franchisees should factor this expense into their initial investment and operating cost projections, as it represents an ongoing financial obligation regardless of whether the center is generating revenue.