What is the minimum monthly contribution required for the Brain Balance Advertising Fund?
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 minimum monthly contribution is $200. However, the contribution is calculated as two percent of gross revenue, so if two percent of a franchisee's gross revenue exceeds $200, the franchisee will be required to pay the higher amount.
This contribution is non-refundable and is due at the same time and in the same manner as royalty payments. Even if a Brain Balance center has not opened by the tenth month following the franchise agreement date, the franchisee is still obligated to begin making Advertising Fund contributions at that time.
The Advertising Fund is used at Brain Balance's discretion for national or regional advertising, public relations, research, charitable activities, website development, and promotion of the centers. Franchisees acknowledge that the advertising efforts may not be proportionate in their specific geographical area and that they may not directly benefit from the expenditures. Franchisees are also not considered third-party beneficiaries with respect to the Advertising Fund.