How often are contributions to the Brain Balance Advertising Fund payable?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
We have created a national advertising fund ("Advertising Fund"). All Corporate and Franchise Centers must contribute 2% of Gross Revenue to the Advertising Fund payable on a monthly basis (Franchise Agreement Section 6.02.) The National Advertising Fund expenditures are designed to establish and promote the Brain Balance® Brand through the collective design, development, implementation and maintenance of marketing and advertising programs. In addition, the Advertising Fund expenditures may be spent on market and consumer research, advertising production, brand positioning and messaging, parent facing materials, photography, television, video and radio production, client testimonial success, public relations, Website development, maintenance, and optimization that benefits all Centers nationally. The cost of local advertising or media placement is not covered by the Advertising Fund and will require significant local media investment by you to generate revenue.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM, AND TRAINING (FDD pages 36–47)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, all Corporate and Franchise Centers must contribute 2% of Gross Revenue to the Advertising Fund. These contributions are payable on a monthly basis, as specified in Franchise Agreement Section 6.02.
This means that as a Brain Balance franchisee, you are required to calculate 2% of your center's gross revenue each month and remit that amount to the Advertising Fund. This fund is used to promote the Brain Balance brand through various marketing and advertising programs at the national level.
It is important to note that the cost of local advertising is separate and will require additional investment from the franchisee. While the Advertising Fund aims to benefit all centers nationally, Brain Balance is not obligated to ensure that each franchisee benefits directly or proportionally to their contributions. Franchisees should factor this monthly advertising fund contribution into their financial planning.