Can Body20 advertise using the Marks inside the Territory?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
he receipts of those Studios, on the same basis as required for franchisees. If we reduce the Brand Fund contribution rate for franchisees, we will reduce the contribution rate for company or Affiliate-owned Studios by the same amount. You acknowledge that our other franchisees may not be required to contribute to the Brand Fund, may be required to contribute to the Brand Fund at a different rate than you, or may be required to contribute to a different Brand Fund.
7.3 Local Marketing.
- (a) Local Marketing Requirements. You must participate in such advertising, promotional, and community outreach programs that we may specify from time to time, at your own expense. You must use your best efforts to promote the use of the Marks in your Territory. You must ensure that all advertising, marketing, promotional, customer relationship management, public relations, and other Brand-related programs and materials that you or your agents or representatives develop or implement relating to the Studio (i) are completely clear, factual, and not misleading, (ii) comply with all Applicable Laws, and (iii) conform to the highest ethical standards and the advertising and marketing policies that we periodically specify. Any media advertising or direct mail marketing that you conduct must be predominantly focused within your Territory, unless we agree otherwise. There are no territorial restrictions from accepting business from retail customers that reside or work or are otherwise based outside of your Territory if these customers contact you, but we reserve the right to implement rules and restrictions regarding soliciting such customers in the future in our Manuals or otherwise in writing.
- (b) Approval of Advertising Materials. You must obtain our advance written approval prior to using or producing any advertising or marketing materials using any of the Marks, in whole or in part. You agree to conduct all advertising in a dignified manner and to conform to the standards and requirements we specify in the Manuals. We will have the final decision on all creative development of advertising and promotional messages. If our written approval is not received within 14 days from the date we received the material, the material is deemed disapproved. We reserve the right to require you to discontinue the use of any advertising or marketing materials.
- (c) Minimum Marketing Expenditure. You must spend at least $1,500 per month on local advertising and promotional activities (the "Marketing Spending Requirement"). Your Marketing Spending Requirement is in addition to your Brand Fund Fee. We have the right to designate in the Manuals the types of expenditures that will or will not count toward the Marketing Spending Requirement. At our request, you must submit appropriate documentation to verify compliance with the Marketing Spending Requirement. If you fail to spend (or prove that you spent) the Marketing Spending Requirement in any month, then we may, in addition to and without limiting our other rights and remedies, require you to pay us the shortfall as an additional Brand Fund Fee or to pay us the shortfall for us to spend on local marketing for your Studio.
- (d) Grand Opening Advertising. In connection with the opening of the Studio, you must spend a minimum of $15,000 for grand opening advertising and promotion beginning at least 60 days before, and ending 30 days after, the opening of your Studio in accordance with a plan that you must submit to us for our approval. We have the right to modify your grand opening plan, in our sole discretion, and may require you to use a public relations firm to assist with your grand opening. The wages and other payroll-related expenses of your employees shall not be credited towards this spending requirement. No amount paid by you for your grand opening will be credited toward the Marketing Spending Requirement. You must provide us with supporting documentation evidencing these expenditures upon request. We reserve the right, however, to require you to pay to us the $15,000 minimum grand opening spend, and we will use those funds to conduct grand opening advertising and promotion for your Studio on your behalf in a manner that we determine in our sole discretion.
7.4 Advertising Cooperatives.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees can advertise using the Marks inside their territory, but with certain stipulations. Body20 franchisees must use their best efforts to promote the use of the Marks in their Territory. Any media advertising or direct mail marketing must be predominantly focused within the franchisee's Territory, unless Body20 agrees otherwise.
However, all advertising and marketing materials using any of the Marks, in whole or in part, require Body20's advance written approval. If written approval is not received within 14 days from the date Body20 receives the material, the material is considered disapproved. Body20 retains the right to require franchisees to discontinue the use of any advertising or marketing materials. Franchisees must also participate in advertising, promotional, and community outreach programs that Body20 specifies from time to time, at their own expense.
Furthermore, Body20 or its Affiliates have the sole right to control all aspects of any Digital Marketing, including those related to the franchisee's Studio. Unless Body20 consents otherwise in writing, franchisees and their employees may not, directly or indirectly, conduct or be involved in any Digital Marketing that use the Marks or that relate to the Studio or the network. If franchisees are permitted to conduct any Digital Marketing, they must comply with any policies, standards, guidelines, or content requirements that Body20 establishes periodically and must immediately modify or delete any Digital Marketing that Body20 determines is not compliant with such policies, standards, guidelines, or requirements. Body20 retains the right to retain full control over all websites, social media accounts, mobile applications, or other means of digital advertising that they have permitted franchisees to use and may withdraw their approval for any Digital Marketing or suspend or terminate the franchisee's use of any Digital Marketing platforms at any time.
In addition to these restrictions, Body20 franchisees must spend at least $1,500 per month on local advertising and promotional activities, which is separate from the Brand Fund Fee. Body20 has the right to designate in the Manuals the types of expenditures that will or will not count toward this Marketing Spending Requirement, and franchisees must submit appropriate documentation to verify compliance with the Marketing Spending Requirement upon request.