What happens to any unused monies in the Brain Balance Advertising Fund at the end of the year?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
, and all other matters related to the Advertising Fund.
Your contributions are payable to the Advertising Fund, will be maintained in an account separate from our other monies, and will not be used to defray any of our expenses. Separate bookkeeping accounts will be maintained for the Advertising Fund. We will use any unused monies in the Advertising Fund at the end of the year in the next fiscal year(s). We do not use any money from the Advertising Fund for marketing that is principally a solicitation for the sale of franchises (Franchise Agreement Section 6.02).
While the BB Franchising annual financial audit includes the Advertising Fund, Franchisees will not receive a copy of the audit, although we do provide an annual summary of Advertising Fund expenditures to each franchisee. If you require an accounting that is more extensive than this annual summary and we are required to provide one to you by law, you may make a written request to us and we will provide it to
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM, AND TRAINING (FDD pages 36–47)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, any unused monies in the Advertising Fund at the end of the year will be used in the subsequent fiscal year(s). This fund is maintained separately from Brain Balance's other monies and is not used to cover the company's expenses. The purpose of the Advertising Fund is to promote the Brain Balance brand through various marketing and advertising programs. These programs include market and consumer research, advertising production, brand positioning, parent-facing materials, photography, television, video and radio production, client testimonial success stories, public relations, and website development, maintenance, and optimization.
Franchisees contribute 2% of their gross revenue to the Advertising Fund on a monthly basis, as detailed in the Franchise Agreement. While the fund aims to benefit all centers nationally, Brain Balance is not obligated to ensure that expenditures are equivalent or proportionate to each franchisee's contributions, nor is it required to guarantee that each franchisee will directly benefit from the fund. Brain Balance retains the right to determine the nature, scope, content, and form of the advertising, the territory in which it appears, the medium used, the budget, and all other matters related to the Advertising Fund.
Although the Advertising Fund is included in Brain Balance's annual financial audit, franchisees will not receive a copy of the audit. Instead, Brain Balance provides an annual summary of Advertising Fund expenditures to each franchisee. If a franchisee requires a more extensive accounting and is legally entitled to it, they can make a written request, which Brain Balance will fulfill within 30 business days. In 2024, Brain Balance collected $841,893.57 for the Advertising Fund.