What is the Brand Fund Fee used for by Body20?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
negative and charge a reasonable rate of interest. The amounts loaned to the Brand Fund will be repaid from future contributions to the Brand Fund in the year the loan is made or in subsequent years.
We may use monies in the Brand Fund and any earnings on the Brand Fund account for any costs associated with advertising (media and production), branding, marketing, public relations and/or promotional programs and materials, and any other activities we determine, in our sole discretion, would benefit the Brand or the Studios generally. These activities may include, but are not limited to: (i) advertising campaigns in various media; (ii) creation, maintenance, and optimization of the System Website or other websites; (iii) keyword or adword purchasing programs; (iv) conducting and managing social media activities; (v) direct mail advertising; (vi)
market research, including secret shoppers and customer satisfaction surveys; (vii) branding studies; (viii) engaging advertising and/or public relations agencies and paying any related retainers and fees; (ix) paying the salaries and benefits of our marketing and brand-building personnel and any other overhead related to our marketing department; (x) purchasing promotional items; (xi) conducting and administering promotions, contests, giveaways, public relations events, and community involvement activities; (xii) marketing the sale of Franchises; (xiii) providing promotional and other marketing materials and services to our franchisees; and (xiv) reasonable administrative costs and overhead we incur related to the administration of the Brand Fund and the implementation of Brand Fund-supported programs.
We may consult with, in our sole discretion, a franchisee advisory council selected by franchisees or a committee of franchisees that we appoint regarding marketing programs. However, we have the right to direct all marketing programs and uses of the Brand Fund, with the final decision over creative concepts, materials, and media used in the programs and their placement.
We do not guarantee that you will benefit from the Brand Fund in proportion to your contributions to the Brand Fund.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Brand Fund Fee is used for various activities that Body20 believes will benefit the Brand or the Studios generally. These activities include advertising, branding, marketing, public relations, and promotional programs and materials.
Specifically, the Brand Fund may be used for advertising campaigns across different media, creating and maintaining the System Website, purchasing keywords for online advertising, managing social media, and conducting direct mail advertising. It also covers market research, such as secret shopper programs and customer satisfaction surveys, as well as branding studies. The fund can be used to engage advertising and public relations agencies, including paying retainers and fees, and to employ marketing personnel, covering their salaries, benefits, and marketing department overhead.
Additionally, the Brand Fund can be used for purchasing and designing promotional items, conducting promotions, contests, giveaways, public relations events, and community involvement activities. It also supports marketing the sale of franchises and providing promotional materials and services to franchisees. Furthermore, Body20 may use the Brand Fund to cover administrative costs and overhead related to managing the fund and implementing its supported programs, and to pay for independent audits of the Brand Fund, should they elect to have one.
Body20 does not guarantee that franchisees will benefit from the Brand Fund in direct proportion to their contributions. Body20 has the right to direct all marketing programs and the use of the Brand Fund, with final say over creative concepts, materials, and media used. Any sales materials produced using Brand Fund monies will be made available to franchisees at no charge or at a reasonable cost, with the proceeds from such sales also deposited back into the Brand Fund.