Is the Body20 Brand Fund Fee used for local advertising?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
orm for all franchisees and must be paid in a lump sum.
ITEM 6 OTHER FEES
OTHER FEES (Note 1)
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (2) | 8% of the Gross Sales of the Studio. | Currently due weekly by the 5th of each month (the "Payment Due Date") | See Note 2 for the definition of Gross Sales. |
| 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. |
| Marketing Spending Requirement | $1,500 per month | The Payment Due Date | You must spend the Marketing Spending Requirement on local advertising and promotional activities. Alternatively, we may require you to pay us the Marketing Spending Requirement, which we will use to conduct local advertising and p |
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 not specifically designated for local advertising. The document states that Body20 has established and administers a Brand Fund, and franchisees are required to contribute a Brand Fund Fee, which is currently 2% of Gross Sales. Body20 retains the right to increase this fee up to 4% of Gross Sales. The FDD does not specify that these funds are used for local advertising.
However, Body20 franchisees are subject to a separate "Marketing Spending Requirement" of $1,500 per month, which must be spent on local advertising and promotional activities. Alternatively, Body20 may require franchisees to pay this amount to them, and Body20 will then use it to conduct local advertising and promotional activities for the franchisee's studio, as determined by Body20 in its sole discretion.
Therefore, while the Brand Fund Fee itself is not earmarked for local advertising, Body20 franchisees are obligated to spend a specified amount on local marketing, either directly or through payments to Body20. A prospective franchisee should inquire with Body20 about how the Brand Fund Fee is used and what benefits franchisees receive from it.