Can the Brand Fund Fee for a Body20 franchise exceed 4% of Gross Sales?

According to Body20's 2025 Franchise Disclosure Document, the Brand Fund Fee will not exceed 4% of Gross Sales. Franchisees must contribute weekly an amount that Body20 specifies, but this amount is capped at 4% of Gross Sales. This Brand Fund is dedicated to activities that Body20 believes will benefit the brand or the studios generally.

Body20 may use the Brand Fund for various costs associated with advertising, branding, marketing, public relations, and promotional programs. This includes advertising campaigns, website maintenance, social media activities, market research, and employing marketing personnel. The Brand Fund can also be used for purchasing promotional items and conducting promotions and events.

Body20 has the option, but is not obligated, to establish the Brand Fund as a segregated or independent fund. Body20 is not considered a fiduciary with respect to the Brand Fund Fees and is not required to have an independent audit of the Brand Fund completed. However, Body20 will prepare an unaudited statement of contributions and expenditures for the Brand Fund, which is available to franchisees upon written request within 60 days after the close of Body20's fiscal year. Any remaining monies in the Brand Fund at the end of a fiscal year will carry over into the next fiscal year.