What is the purpose of the Brand Fund Fee for Body20 franchisees?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
You must contribute weekly an amount that we specify from time to time in our sole discretion, which will not exceed 4% of your Gross Sales (the "Brand Fund Fee") to a fund dedicated to activities we believe would benefit the Brand or the Studios generally (the "Brand Fund").
We may use monies in the Brand Fund and any earnings on the Brand Fund account for any costs associated with advertising (media and production), branding, marketing, public relations and/or promotional programs and materials, and any other activities we determine, in our sole discretion, would benefit the Brand or the Studios generally, including (i) advertising campaigns in various media; (ii) creation, maintenance, and optimization of the System Website or other websites; (iii) keyword or adword purchasing programs; (iv) conducting and managing social media activities; (v) direct mail advertising; (vi) market research, including secret shoppers and customer satisfaction surveys; (vii) branding studies; (viii) engaging advertising and/or public relations agencies and paying any related retainers and fees; (ix) employing marketing and brand-building personnel and paying the salaries and benefits of such personnel and our marketing department overhead; (x) purchasing and designing promotional items; (xi) conducting and administering promotions, contests, giveaways, public relations events, and community involvement activities; (xii) marketing the sale of franchises; and (xiii) providing promotional and other marketing materials and services to our franchisees.
We may also use contributions to the Brand Fund for reasonable administrative costs and overhead we incur in the administration of the Brand Fund and the implementation of Brand Fund-supported programs.
We may use monies in the Brand Fund to pay for an independent audit of the Brand Fund, if we elect to have it audited.
We do not guarantee that you will benefit from the Brand Fund in proportion to your contributions to the Brand Fund.
You must participate in such advertising, promotional, and community outreach programs that we may specify from time to time, at your own expense.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Brand Fund Fee is contributed to a fund dedicated to activities that Body20 believes would benefit the Brand or the Studios generally. This fee will not exceed 4% of the franchisee's Gross Sales. Body20 may use the monies in the Brand Fund for costs associated with advertising, branding, marketing, public relations, and/or promotional programs and materials. These activities are determined at Body20's discretion.
Specifically, the Brand Fund may be used for advertising campaigns, website creation and maintenance, keyword purchasing programs, social media activities, direct mail advertising, market research, branding studies, engaging advertising and public relations agencies, employing marketing personnel, purchasing promotional items, and conducting promotions and community involvement activities. It can also be used for marketing the sale of franchises and providing promotional materials to franchisees.
In addition, the Brand Fund can cover reasonable administrative costs and overhead incurred in administering the fund and implementing Brand Fund-supported programs. It may also be used to pay for an independent audit of the Brand Fund, should Body20 elect to have one. Body20 does not guarantee that franchisees will benefit from the Brand Fund in proportion to their contributions. Franchisees are also required to participate in advertising, promotional, and community outreach programs specified by Body20 at their own expense, in addition to the Brand Fund Fee.