For Body20, can the Brand Fund be used to market the sale of franchises?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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, including (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) employing marketing and brand-building personnel and paying the salaries and benefits of such personnel and our marketing department overhead; (x) purchasing and designing promotional items; (xi) conducting and administering promotions, contests, giveaways, public relations events, and community involvement activities; (xii) marketing the sale of franchises; and (xiii) providing promotional and other marketing materials and services to our franchisees.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Brand Fund can be used to market the sale of franchises. Specifically, the FDD states that Body20 may use the monies in the Brand Fund for various activities that would benefit the brand or the studios, including marketing the sale of franchises.
This means that a portion of the fees that Body20 franchisees pay into the Brand Fund could be used to attract new franchisees to the system. This is a common practice in franchising, as the growth of the franchise network benefits all franchisees by increasing brand recognition and potentially lowering costs through economies of scale.
It is important to note that Body20 has sole discretion over how the Brand Fund is used. While the FDD mentions that Body20 may consult with a franchisee advisory council or committee, the final decision on all marketing programs and uses of the Brand Fund rests with Body20. This means that while franchisees contribute to the fund, Body20 ultimately decides whether or not to allocate resources to franchise sales marketing.