Under what condition can a Brain Balance franchisee request a more extensive accounting of the Advertising Fund expenditures?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
While the BB Franchising annual financial audit includes the Advertising Fund, Franchisees will not receive a copy of the audit, although we do provide an annual summary of Advertising Fund expenditures to each franchisee. If you require an accounting that is more extensive than this annual summary and we are required to provide one to you by law, you may make a written request to us and we will provide it to you within 30 business days.
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, franchisees typically receive an annual summary of Advertising Fund expenditures. However, a franchisee can request a more detailed accounting of these expenditures if required by law.
Specifically, if a law mandates that Brain Balance provide a more extensive accounting than the standard annual summary, the franchisee can submit a written request. Upon receiving this request, Brain Balance is obligated to provide the additional accounting information within 30 business days.
This stipulation ensures that Brain Balance franchisees can access detailed financial information about the Advertising Fund if legal requirements necessitate it, offering a degree of transparency beyond the standard annual summary. However, the franchisee must be aware of the relevant laws and proactively make a written request to receive this more extensive accounting.