On what page of the FDD can I find information about the Brand Fund Fee for a Body20 franchise?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
(a) Fund Management. We may, but are not obligated to, establish the Brand Fund, a segregated or independent fund into which all Brand Fund Fees will be paid. In no event will we be deemed a fiduciary with respect to any Brand Fund Fees we receive or
administer. We are not required to have an independent audit of the Brand Fund completed. We will prepare an unaudited statement of contributions and expenditures for the Brand Fund and make it available within 60 days after the close of our fiscal year to franchisees that make a written request for a copy. If any monies in the Brand Fund remain at the end of a fiscal year, they will carry-over in the Brand Fund into the next fiscal year. We or one of our Affiliates may make or otherwise arrange loans to the Brand Fund in any year in which the balance of the Brand Fund is negative and charge a reasonable rate of interest. The amounts loaned to the Brand Fund will be repaid from future contributions to the Brand Fund in the year the loan is made or in subsequent years.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, information regarding the Brand Fund Fee can be found within Item 23, titled "Receipt".
Item 23 outlines various aspects of the Brand Fund, including its management and potential uses. Specifically, it mentions that Body20 may establish a Brand Fund, a segregated fund where all Brand Fund Fees are deposited. It clarifies that Body20 is not considered a fiduciary concerning these fees and is not obligated to conduct independent audits of the Brand Fund. However, Body20 will provide an unaudited statement of contributions and expenditures to franchisees who request it in writing within 60 days after the fiscal year ends.
The FDD also details how the Brand Fund monies may be used, including advertising, branding, marketing, public relations, promotional programs, website maintenance, social media activities, market research, and more. This gives prospective Body20 franchisees insight into how their Brand Fund Fees will be utilized to support the overall brand and network.