What must a Body20 franchisee do with their grand opening plan, and who has the right to modify it?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
ing any additional insurance that you may wish to carry above our required minimums.
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- Grand Opening Marketing. 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 under 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 for your employees will not be credited towards this spending requirement. Your cost may be higher based on the length of time you wish to run opening promotions or any additional marketing spending you may choose to undertake. You must provide us with supporting documentation evidencing these expenditures upon our request. No amount paid by you for your grand opening will be credited towards the Marketing Spending Requirement. If you fail to meet the required minimum number of pre-opening members and/or paid
membership sales (at least 100 members and/or memberships that will generate at least $20,000 in recurring monthly Gross Sales), with the intent and effect that the pre-sold memberships will commence immediately on the Studio's opening date, we may terminate the Franchise Agreement. In lieu of terminating the Franchise Agreement, however, we may require you to spend an additional $10,000 for grand opening advertising and promotion for the Studio. We reserve the right to require you to pay us the $15,000 (or, as applicable $25,000) minimum grand opening spend, and we will use those funds to conduct grand op
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee is required to submit their grand opening plan to Body20 for approval. This plan should detail how the franchisee intends to spend a minimum of $15,000 on advertising and promotion related to the grand opening of their studio. This marketing effort must begin at least 60 days before the studio opens and continue for 30 days after the opening.
Body20 retains the right to modify the franchisee's grand opening plan at its discretion. Additionally, Body20 may require the franchisee to engage a public relations firm to assist with the grand opening. The wages and payroll-related expenses for the franchisee's employees cannot be credited towards the $15,000 spending requirement.
If a Body20 franchisee fails to meet a minimum of 100 pre-opening members or memberships that will generate at least $20,000 in recurring monthly Gross Sales, with the intent that the pre-sold memberships will commence immediately on the Studio's opening date, Body20 may terminate the Franchise Agreement. However, instead of terminating the agreement, Body20 may require the franchisee to spend an additional $10,000 for grand opening advertising and promotion for the Studio. Body20 also reserves the right to require the franchisee to pay them the $15,000 (or, as applicable $25,000) minimum grand opening spend, and Body20 will use those funds to conduct grand opening advertising and promotion for the franchisee's Studio on their behalf in a manner that they determine in their sole discretion.
This level of control over the grand opening plan is not uncommon in franchising, as franchisors want to ensure brand consistency and a successful launch for each location. Prospective Body20 franchisees should carefully consider these requirements and the potential for additional spending when planning their initial investment and marketing strategies.