What is the minimum monthly contribution to the Advertising Fund required 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 are required to contribute to the Advertising Fund. The contribution is 2% of gross revenue, with a minimum monthly payment of $200. This contribution is non-refundable and is due at the same time and in the same manner as royalty payments.
If a Brain Balance center has not opened by the tenth month following the franchise agreement date, the franchisee must begin paying the Advertising Fund contribution at that time, regardless of whether the center is operational. The funds collected are maintained by Brain Balance in a segregated account and are used at the company's discretion for advertising, public relations, research dissemination, charitable activities, website development, and promotion of Brain Balance centers.
Brain Balance emphasizes that the Advertising Fund is intended to maximize public awareness of the Brain Balance Program for the benefit of the entire system. However, the FDD clarifies that Brain Balance does not guarantee that advertising expenditures will be proportionate or result in direct benefits for each franchisee's specific territory. Franchisees are also not considered third-party beneficiaries of the Advertising Fund, meaning they have limited rights to enforce contribution obligations.