How often must a Brain Balance franchisee submit evidence of local advertising expenditures?
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 obligations for local advertising described in Section 6.
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 or 9% of their gross revenue, whichever is greater, on local advertising. This advertising must align with Brain Balance's directions regarding allocation across various marketing channels.
The FDD does not specify how often a franchisee must submit evidence of these local advertising expenditures. However, it does state that all advertising and promotional materials, whether printed or digital, must be submitted to Brain Balance for written approval before use. If Brain Balance does not provide written approval within ten days, the materials are considered disapproved.
Given the requirement for pre-approval of advertising materials, it is likely that Brain Balance franchisees need to regularly provide evidence of their planned advertising expenditures to ensure compliance with the brand's standards and minimum spending requirements. A prospective franchisee should clarify the exact reporting frequency and methods for demonstrating compliance with Brain Balance during their due diligence.