factual

Is Brain Balance required to expend the entire Advertising Fund during any calendar year?

Brain_Balance Franchise · 2025 FDD

Answer from 2025 FDD Document

Expenditures from the Advertising Fund shall be made at the sole discretion of COMPANY and may be for the benefit of any one or more of the Marks. COMPANY shall not be required to expend the entire Advertising Fund during any calendar year.

Source: Item 22 — CONTRACTS (FDD pages 70–72)

What This Means (2025 FDD)

According to Brain Balance's 2025 Franchise Disclosure Document, Brain Balance is not required to spend the entire advertising fund during any calendar year. The FDD states that expenditures from the Advertising Fund are made at the sole discretion of Brain Balance and may benefit any one or more of its marks.

This means that Brain Balance has full control over how the advertising fund is spent and is not obligated to use all of the funds collected each year. This provides Brain Balance with flexibility in managing the advertising fund and allows them to make strategic decisions about how to best promote the Brain Balance program.

For a prospective franchisee, this indicates that they cannot expect the advertising fees they pay to necessarily result in direct or proportionate advertising efforts in their specific area. The franchisee also has no recourse if they believe the funds are not being spent effectively, as they are not considered a third-party beneficiary with respect to the Advertising Fund.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.