Is the Body20 franchisee required to contribute to the Brand Fund?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Brand Fund Fee | Currently, 2% of Gross Sales of the Studio. | The Payment Due Date | We have established and administer a Brand Fund and require you to contribute the Brand Fund Fee. We may increase the fee up to 4% of the Gross Sales of the Studio. See Note 2 for the definition of Gross Sales. |
NOTES:
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- "Gross Sales" means all revenue that you receive or otherwise derive from operating the Studio, whether from cash, check, credit or debit card, gift card or gift certificate, or other credit transactions, and regardless of collection or when you actually provide the products or services in exchange for the revenue. If you receive any proceeds from any business interruption insurance applicable to loss of revenue at the Studio, there shall be added to Gross Sales an amount equal to the imputed Gross Sales that the insurer used to calculate those proceeds. Gross Sales includes promotional allowances or rebates paid to you in connection with your purchase of products or supplies or your referral of customers. Gross Sales does not include (i) any bona fide returns and credits that are actually provided to customers and (ii) any sales or other taxes that you collect from customers and pay directly to the appropriate taxing authority. You may not deduct payment provider fees (i.e., bank or credit card company fees and gift card vendor fees) from your Gross Sales calculation.
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 the Brand Fund. The Brand Fund Fee is currently 2% of the Gross Sales of the Studio, and is due weekly by the 5th of each month, also known as the "Payment Due Date."
Body20 has established and administers the Brand Fund. The FDD specifies that Body20 may increase the Brand Fund fee up to 4% of the Gross Sales of the Studio. Gross Sales includes all revenue received from operating the studio, whether from cash, credit, or other transactions, including proceeds from business interruption insurance. Gross Sales does not include bona fide returns and credits to customers or sales and other taxes collected from customers.
This means that a Body20 franchisee must budget for this ongoing fee, which is calculated as a percentage of their total revenue. The fact that the fee can be increased up to 4% means franchisees should be prepared for potential increases in this expense. Franchisees should carefully track their gross sales to accurately calculate and remit this fee to Body20.