How is the Body20 Brand Fund Fee calculated?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Brand Fund Fee | Currently, 2% of Gross Sales of the Studio. | The Payment Due Date | We have established and administer a Brand Fund and require you to contribute the Brand Fund Fee. We may increase the fee up to 4% of the Gross Sales of the Studio. See Note 2 for the definition of Gross Sales. |
NOTES:
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- "Gross Sales" means all revenue that you receive or otherwise derive from operating the Studio, whether from cash, check, credit or debit card, gift card or gift certificate, or other credit transactions, and regardless of collection or when you actually provide the products or services in exchange for the revenue. If you receive any proceeds from any business interruption insurance applicable to loss of revenue at the Studio, there shall be added to Gross Sales an amount equal to the imputed Gross Sales that the insurer used to calculate those proceeds. Gross Sales includes promotional allowances or rebates paid to you in connection with your purchase of products or supplies or your referral of customers. Gross Sales does not include (i) any bona fide returns and credits that are actually provided to customers and (ii) any sales or other taxes that you collect from customers and pay directly to the appropriate taxing authority. You may not deduct payment provider fees (i.e., bank or credit card company fees and gift card vendor fees) from your Gross Sales calculation.
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Brand Fund Fee is currently 2% of the Gross Sales of the Studio. This fee is due on the same date as the Royalty Fee, referred to as the "Payment Due Date." Body20 defines "Gross Sales" as all revenue received from operating the studio, including cash, checks, credit or debit cards, gift cards, and other credit transactions, regardless of when the products or services are provided. Gross Sales also include proceeds from business interruption insurance related to revenue loss and promotional allowances or rebates received for purchasing products or supplies or customer referrals.
However, Gross Sales does not include bona fide returns and credits actually provided to customers or sales and other taxes collected from customers and paid to the appropriate taxing authority. Franchisees are not allowed to deduct payment provider fees, such as bank or credit card company fees, from their Gross Sales calculation.
Body20 has the right to increase the Brand Fund Fee up to a maximum of 4% of the Gross Sales of the Studio. The Brand Fund is administered by Body20, and the contributions are used for the benefit of the Body20 brand.