Does Brain Balance guarantee that expenditures from the Advertising Fund will result in proportionate advertising in a Brain Balance franchisee's territory?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
No representation is made by COMPANY, and FRANCHISEE acknowledges that expenditures from the Advertising Fund may not result in a proportionate or any advertising effort in a particular geographical area, including FRANCHISEE's Territory, or that FRANCHISEE will benefit directly from any expenditures from the Advertising Fund.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, Brain Balance does not guarantee that advertising expenditures will result in proportionate advertising in a franchisee's territory. The FDD states that Brain Balance intends to use advertising fund proceeds to maximize general public awareness of the Brain Balance Program for the benefit of the system as a whole. However, 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 a franchisee's territory, or that a franchisee will benefit directly from any expenditures from the advertising fund.
This means that while franchisees are required to contribute to the Advertising Fund, there is no guarantee that these contributions will directly benefit their specific location or territory. The funds are used at the discretion of Brain Balance for national and regional advertising, public relations, website development, and other promotional activities intended to benefit the entire Brain Balance system.
Prospective franchisees should be aware that the primary goal of the Advertising Fund is to promote the Brain Balance brand on a broad scale, and individual franchisees may not see a direct or measurable return on their contributions in their specific area. Franchisees are also required to spend a minimum of $6,000 per calendar month or 9% of gross revenue, whichever is greater, on local advertising.