What is the minimum amount a Brain Balance franchisee must spend per month on local advertising?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
he territory in which they are to appear; the form thereof; the media and the budget therefore; and all other relevant decisions regarding the implementation of such advertising and promotion programs.
- (e) FRANCHISEE shall spend a minimum of $6,000 per calendar month or nine percent (9.0%) of its Gross Revenue, whichever is greater, for local advertising in accordance with COMPANY's direction as to allocation among various marketing channels.
- (f) If FRANCHISOR recommends an Advertising Cooperative ("Advertising Co-op") in FRANCHISEE's designated marketing area ("DMA") and one is established, FRANCHISEE shall join it by executing the applicable by-laws, and shall contribute at least the amount set forth in Section 6.07. FRANCHISEE's payments to the media fund for the Advertising Co-op will apply toward satisfaction of FRANCHISEE's obligati
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 spend a minimum of $6,000 per calendar month on local advertising. However, the FDD states that if nine percent (9.0%) of the franchisee's Gross Revenue exceeds $6,000, the franchisee must spend that higher amount instead. The advertising must be in accordance with Brain Balance's directions regarding allocation among various marketing channels. This ensures that franchisees actively promote their centers within their local markets, but also gives Brain Balance some control over how those advertising dollars are spent.
This requirement ensures consistent local marketing efforts across all Brain Balance franchise locations. The "whichever is greater" clause means that as a franchisee's revenue grows, their advertising expenditure must also increase proportionally, which is a common practice in franchising to sustain growth. This benefits both the franchisee and the Brain Balance brand by maintaining visibility and attracting new customers.
Additionally, if Brain Balance recommends an Advertising Cooperative in the franchisee's designated marketing area and one is established, the franchisee is required to join it and contribute at least the amount set forth in Section 6.07 of the franchise agreement. Payments to the media fund for the Advertising Co-op will count toward the franchisee's local advertising obligations. Advertising Co-ops are independently established and operated by franchisees in a DMA and not controlled or governed by Brain Balance.