What kind of advertising is a Brain Balance franchisee required to conduct?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
nt") in the form annexed hereto as Exhibit 2, which will allow FRANCHISOR to debit FRANCHISEE's bank account during the term of this Agreement for the royalties due.
6.02. Advertising Fund
- (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 not opened by the tenth (10th) month following the date of the Franchise Agreement, FRANCHISEE will be required to pay to COMPANY the contribution to the Advertising Fund beginning that month.
- (c) Contributions to the Advertising Fund from FRANCHISEE and all other franchisees shall be maintained by COMPANY in a single segregated account designated for that purpose. The proceeds of the Advertising Fund shall be expended at the discretion of COMPANY for national and/or regional advertising, public relations, dissemination of research results achieved through approved research facilities, the Brain Balance® Foundation and other charitable activities, Web site and other electronic media development, and/or promotion of the Center businesses conducted under the Marks and publications relating to the Brain Balance Program®, and the payment of fees, costs, and other charges pertaining to such activities, including but not limited to COMPANY's administrative expenses associated with the foregoing.
- FRANCHISEE acknowledges that proceeds of the Advertising Fund are intended to be used to maximize general public awareness of the Brain Balance Program® for the benefit of the Sy
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are required to participate in and contribute to the Advertising Fund established by Brain Balance for the benefit of all franchisees and company-operated centers. The franchisee's contribution to this fund is non-refundable and is equal to two percent of Gross Revenue, with a minimum of $200 due monthly, payable in the same manner and at the same time as the royalty fees. If a Brain Balance center is not opened by the tenth month following the franchise agreement date, the franchisee must still begin contributing to the Advertising Fund at that time.
The proceeds from the Advertising Fund are managed by Brain Balance and are intended to maximize general public awareness of the Brain Balance Program for the benefit of the entire system. These funds may be used for national and/or regional advertising, public relations, dissemination of research results, support for the Brain Balance Foundation and other charitable activities, website and electronic media development, and promotion of the Brain Balance center businesses. The funds can also cover fees, costs, and administrative expenses associated with these activities.
Brain Balance retains discretion over how the Advertising Fund is spent, and expenditures may not result in proportionate advertising efforts in every geographical area, including the franchisee's specific location. Franchisees must also adhere to specific guidelines regarding the use of the Brain Balance name and trademarks in any advertising, ensuring compliance with the company's written instructions. All advertising and promotional materials, whether printed or digital, including internet and electronic media advertisements, must receive prior written consent from Brain Balance. Franchisees are permitted to maintain an independent social media presence on platforms like Facebook, Instagram, and Twitter.