Can a Body20 franchisee credit employee wages towards the grand opening advertising spending requirement?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
or 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, franchisees cannot credit employee wages or payroll-related expenses toward the $15,000 minimum grand opening advertising spending requirement. This grand opening advertising and promotion must occur between 60 days before and 30 days after the studio opening, following a plan approved by Body20.
The franchisee is responsible for providing documentation to Body20 to evidence these expenditures upon request. If a franchisee fails to meet the spending requirement, Body20 may require the franchisee to pay the shortfall as an additional Brand Fund Fee or to use the funds for local marketing for the studio.
Body20 retains the right to modify the grand opening plan and may require the franchisee to use a public relations firm. Alternatively, Body20 may require the franchisee to pay the $15,000 minimum grand opening spend, which Body20 will then use to conduct grand opening advertising and promotion for the studio. No amount paid by the franchisee for the grand opening will be credited toward the general Marketing Spending Requirement.
If a Body20 franchisee fails to meet the pre-opening membership requirement, Body20 can require the franchisee to spend an additional $10,000 for grand opening advertising and promotion for the studio, bringing the total potential grand opening spend to $25,000. Body20 retains the right to manage these funds and advertising efforts at its discretion.