For Body20, can the Brand Fund be used to pay for an independent audit of the Brand Fund?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
We may use monies in the Brand Fund to pay for an independent audit of the Brand Fund, if we elect to have it audited.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 may use the monies in the Brand Fund to pay for an independent audit of the Brand Fund, if they elect to have it audited. This indicates that while an independent audit is not mandatory, the option exists and can be funded through the Brand Fund.
This flexibility allows Body20 to ensure transparency and accountability in the management of the Brand Fund if they deem it necessary. For prospective franchisees, this means that the Brand Fund, which is contributed to by franchisees, could potentially be used to conduct an audit, providing an additional layer of financial oversight.
However, it's important to note that Body20 retains the discretion to decide whether or not to conduct an audit. Franchisees do not have the right to demand an audit, but the possibility exists that the Brand Fund could be used for this purpose, offering some reassurance regarding the fund's management.