Is Brain Balance required to spend the entire Advertising Fund during each calendar year?

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 be for the benefit of any one or more of the Marks. Brain Balance has the right to determine the nature, scope, and content of advertising and promotion programs; the 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.

This means that Brain Balance has full control over how the advertising fund is spent, and they are not obligated to spend all of the money collected in a given year. This could be a risk for franchisees, as there is no guarantee that the money they contribute to the advertising fund will be used to promote their specific location or region. However, Brain Balance states that the proceeds of the Advertising Fund are intended to be used to maximize general public awareness of the Brain Balance Program for the benefit of the System as a whole.

Franchisees are required to contribute to the advertising fund. The franchisee's non-refundable contribution to the Advertising Fund is equal to two percent (2%) of Gross Revenue, with a minimum of $200 due monthly. In addition to the advertising fund, franchisees must 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 Brain Balance's direction as to allocation among various marketing channels.