Does the Body20 FDD specify how the Brand Fund is used?
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. |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees are required to contribute to a Brand Fund. The Brand Fund fee is currently 2% of the studio's gross sales. Body20 retains the right to increase this fee up to 4% of gross sales. The FDD does not specify how the Brand Fund will be used.
While the FDD mentions the Brand Fund and the associated fees, it lacks specific details on how these funds are utilized. This is a crucial point for potential franchisees, as it directly impacts their financial obligations and the overall marketing strategy of the Body20 brand. Without transparency on fund allocation, franchisees may be uncertain about the value they receive from these mandatory contributions.
Prospective Body20 franchisees should seek clarification from the franchisor regarding the Brand Fund's usage. Key questions to ask include: What specific marketing and advertising activities are funded by the Brand Fund? What percentage of the fund is allocated to national advertising versus regional or local campaigns? How are decisions made regarding the allocation of Brand Fund resources? Requesting detailed information about the Brand Fund's governance and expenditure will help franchisees make informed decisions.