Does Brain Balance guarantee that advertising fund expenditures will result in proportionate advertising in a franchisee's territory?

According to Brain Balance's 2025 Franchise Disclosure Document, Brain Balance does not guarantee that advertising fund expenditures will result in proportionate advertising in a franchisee's territory. The FDD states that Brain Balance makes no representation that expenditures from the advertising fund will result in proportionate or any advertising effort in a particular geographical area, including the franchisee's territory, or that the franchisee will benefit directly from any expenditures from the advertising fund.

This means that while franchisees are required to contribute to the advertising fund, Brain Balance has sole discretion over how the funds are spent. The funds are intended to maximize general public awareness of the Brain Balance program for the benefit of the system as a whole, and Brain Balance is not obligated to ensure that each franchisee benefits directly or proportionately from these expenditures.

The franchisee is also obligated to spend a minimum of $6,000 per calendar month or 9% of its gross revenue, whichever is greater, on local advertising, as directed by Brain Balance. Additionally, if Brain Balance recommends an Advertising Cooperative in the franchisee's designated marketing area and one is established, the franchisee must join and contribute to it. These payments to the media fund for the Advertising Co-op will count toward the franchisee's local advertising obligations.