Does Body20 guarantee that franchisees will benefit from the Brand Fund in proportion to their contributions?

According to Body20's 2025 Franchise Disclosure Document, Body20 does not guarantee that franchisees will benefit from the Brand Fund in direct proportion to their contributions. This means that while franchisees are required to contribute to the Brand Fund, there is no assurance that the marketing and advertising efforts funded by it will directly or equally benefit each franchisee. The Brand Fund is used for various activities, including advertising campaigns, website maintenance, social media, and other marketing initiatives that Body20 deems beneficial for the brand and studios generally.

The FDD specifies that Body20 has the right to direct all marketing programs and uses of the Brand Fund, with the final decision over creative concepts, materials, and media used in the programs and their placement. This discretion allows Body20 to allocate funds to initiatives that it believes will provide the greatest overall benefit to the Body20 system, which may not necessarily align with the individual contributions of each franchisee.

For a prospective franchisee, this implies that contributing to the Brand Fund is a mandatory aspect of the franchise agreement, but the benefits derived from the fund's use may vary. Franchisees should be aware that the allocation of Brand Fund monies is at Body20's discretion, and there is no guarantee of a direct return on their specific contributions. It is important to consider this when evaluating the potential return on investment and to discuss marketing strategies and expectations with Body20 during the due diligence process.