What is the minimum monthly contribution to the Advertising Fund for a Brain Balance franchise?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 n
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees must contribute to the Advertising Fund. The contribution is 2% of gross revenue, with a minimum monthly payment of $200. This payment is due at the same time and in the same manner as royalty fees.
Even if a Brain Balance center is not yet open, the franchisee must begin contributing to the Advertising Fund starting the tenth month after signing the Franchise Agreement. This means franchisees need to budget for this expense even before generating revenue.
Brain Balance maintains the Advertising Fund in a segregated account and has the discretion to use the funds for national or regional advertising, public relations, research dissemination, charitable activities like the Brain Balance Foundation, website development, and other promotional activities. While the goal is to maximize awareness of the Brain Balance Program, the FDD clarifies that there's no guarantee that advertising efforts will directly benefit each franchisee's specific territory.