Can Body20's affiliates use amounts received from suppliers without restriction?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Revenue from Purchases. You acknowledge and agree that we and/or our Affiliates may derive revenue based on your purchases and leases, including from charging you for products and services we or our Affiliates provide to you and from promotional allowances, volume discounts, and other payments made to us by suppliers and/or distributors that we designate or approve for some or all of our franchisees. We and our Affiliates may use all amounts received from suppliers and/or distributors, whether or not based on your or other franchisees' actual or prospective dealings with them, without restriction for any purposes we or our Affiliates deem appropriate. If you derive any revenue based on payments or promotional allowances received from suppliers and/or distributors, you must report to us the details of the arrangement and such revenue shall be included as part of your Gross Sales.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 and its affiliates have the right to use funds received from suppliers and distributors without any restrictions. This includes revenue derived from a franchisee's purchases and leases, charges for products and services provided to the franchisee, and promotional allowances or volume discounts from approved suppliers.
This means that Body20 and its affiliates are not obligated to share these revenues with franchisees or use them for any specific purpose that directly benefits the franchisees. They can allocate these funds as they deem appropriate.
For a prospective Body20 franchisee, this indicates that while they may be required to purchase or lease certain products, supplies, or services from approved suppliers, Body20 and its affiliates can independently benefit financially from these arrangements without necessarily passing those benefits back to the franchisee. The franchisee should consider this when evaluating the overall cost and potential profitability of the franchise.