Under what conditions 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 detailed in Section 6.07 of the agreement. It is 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 requirement ensures that franchisees participate in coordinated advertising efforts within their local markets when Brain Balance deems it beneficial. However, the franchisee should be aware that the franchisor does not control the co-op, and it is operated independently by the franchisees in the DMA.