What is the minimum amount a Body20 franchisee must spend on grand opening advertising and promotion?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
pending Requirement. At our request, you must submit appropriate documentation to verify compliance with the Marketing Spending Requirement. If you fail to spend (or prove that you spent) the Marketing Spending Requirement in any month, then we may, in addition to and without limiting our other rights and remedies, require you to pay us the shortfall as an additional Brand Fund Fee or to pay us the shortfall for us to spend on local marketing for 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, a franchisee must spend a minimum of $15,000 for grand opening advertising and promotion. This spending must occur between 60 days before and 30 days after the studio's opening. The franchisee is required to submit a grand opening plan to Body20 for approval, and Body20 has the right to modify this plan.
Notably, wages and payroll-related expenses for the franchisee's employees cannot be credited towards this $15,000 spending requirement. Additionally, the grand opening advertising expenditure does not count towards the franchisee's general Marketing Spending Requirement. This means the grand opening spend is a separate, additional marketing expense.
Body20 also reserves the right to manage the grand opening advertising and promotion directly. In this case, the franchisee would pay Body20 the $15,000, and Body20 would then handle the advertising and promotion activities for the studio's grand opening. Furthermore, if a franchisee fails to meet a pre-opening membership requirement, Body20 may require the franchisee to spend an additional $10,000 on grand opening advertising and promotion, bringing the total potential grand opening spend to $25,000.