Under what condition is a Brain Balance franchisee required to join an Advertising Cooperative?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 6.07 of this Agreement. Advertising Co-ops are independently established and operated by franchisees in a DMA and not controlled or governed by FRANCHISOR.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, a franchisee is required to join an Advertising Cooperative under specific conditions. If Brain Balance recommends an Advertising Cooperative within the franchisee's designated marketing area (DMA) and such a cooperative is established, the franchisee must join it. This involves executing the cooperative's by-laws and contributing at least the amount specified in Section 6.07 of the franchise agreement.
Payments made by the franchisee to the Advertising Co-op's media fund will count towards fulfilling the franchisee's local advertising obligations, as outlined in Section 6.07 of the agreement. This means that the money spent on the co-op can offset the amount the franchisee is required to spend on their own local advertising efforts.
It's important to note that these Advertising Co-ops are independently established and operated by franchisees within a DMA and are not under the direct control or governance of Brain Balance itself. This implies that while Brain Balance may recommend joining a co-op, the franchisees themselves manage the co-op's activities and funds.