Are promotional allowances included in Body20's Gross Sales calculation?

According to Body20's 2025 Franchise Disclosure Document, Gross Sales include promotional allowances or rebates paid to the franchisee in connection with their purchase of products or supplies or their referral of customers. This means that any discounts, rebates, or allowances that Body20 franchisees receive from suppliers or from Body20 itself as part of a promotion must be included when calculating their Gross Sales.

This inclusion of promotional allowances in Gross Sales has a direct impact on the amount of Royalty Fees and Brand Fund Fees that a Body20 franchisee will owe. Since these fees are calculated as a percentage of Gross Sales (8% for Royalty Fees and up to 4% for Brand Fund Fees), a higher Gross Sales figure due to the inclusion of promotional allowances will result in higher fee payments to Body20.

For a prospective Body20 franchisee, it is important to understand how these promotional allowances are tracked and reported to ensure accurate calculation of Gross Sales and associated fees. Franchisees should maintain detailed records of all revenue streams, including any promotional allowances or rebates received, and consult with Body20 to clarify any uncertainties regarding the calculation of Gross Sales.