If Body20 or its Affiliates operate any Studios, do they contribute to the Brand Fund?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
If we or our Affiliates operate any Studios, we or our Affiliates will contribute to the Brand Fund a percentage of the receipts of those Studios, on the same basis as required for franchisees.
If we reduce the Brand Fund contribution rate for franchisees, we will reduce the contribution rate for company or Affiliate-owned Studios by the same amount.
You acknowledge that our other franchisees may not be required to contribute to the Brand Fund, may be required to contribute to the Brand Fund at a different rate than you, or may be required to contribute to a different Brand Fund.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if Body20 or its affiliates operate any studios, they will contribute to the Brand Fund. The contribution will be a percentage of the receipts from those studios, calculated on the same basis as required for franchisees.
Furthermore, if Body20 reduces the Brand Fund contribution rate for franchisees, they will also reduce the contribution rate for company or affiliate-owned studios by the same amount. This ensures that company-owned studios are treated equitably in relation to franchisee-owned studios regarding Brand Fund contributions.
However, the FDD also states that other franchisees may not be required to contribute to the Brand Fund, may be required to contribute at a different rate, or may be required to contribute to a different Brand Fund. This implies that contribution terms can vary among franchisees, adding a layer of complexity to the Brand Fund contributions.