What documentation must a Body20 franchisee provide to evidence grand opening expenditures?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
pending Requirement. At our request, you must submit appropriate documentation to verify compliance with the Marketing Spending Requirement. If you fail to spend (or prove that you spent) the Marketing Spending Requirement in any month, then we may, in addition to and without limiting our other rights and remedies, require you to pay us the shortfall as an additional Brand Fund Fee or to pay us the shortfall for us to spend on local marketing for your Studio.
- (d) Grand Opening Advertising. In connection with the opening of the Studio, you must spend a minimum of $15,000 for grand opening advertising and promotion beginning at least 60 days before, and ending 30 days after, the opening of your Studio in accordance with a plan that you must submit to us for our approval. We have the right to modify your grand opening plan, in our sole discretion, and may require you to use a public relations firm to assist with your grand opening. The wages and other payroll-related expenses of your employees shall not be credited
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee must spend a minimum of $15,000 for grand opening advertising and promotion, starting at least 60 days before and ending 30 days after the studio opens. This spending must align with a plan submitted to Body20 for approval, which Body20 can modify at its discretion, even requiring the franchisee to use a public relations firm.
The franchisee must provide Body20 with supporting documentation to evidence these grand opening expenditures upon request. Wages and payroll-related expenses for the franchisee's employees cannot be credited toward this $15,000 spending requirement. This grand opening spend is separate from and does not count towards the general Marketing Spending Requirement.
Body20 retains the right to require the franchisee to pay the $15,000 grand opening spend directly to Body20. If Body20 exercises this right, it will then manage the grand opening advertising and promotion for the studio in a manner it determines at its sole discretion. This means that while the franchisee is generally responsible for providing documentation of their marketing spend, Body20 can take over the marketing and require the franchisee to simply pay the funds to them.