For what purposes may Body20 use the monies in the Brand Fund?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
(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.
- (b) Use of 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.
- (c) Control Over Brand Fund.
We may consult with, in our sole discretion, a franchisee advisory council selected by franchisees or a committee of franchisees that we appoint regarding marketing programs.
However, we have the right to direct all marketing programs and uses of the Brand Fund, with the final decision over creative concepts, materials, and media used in the programs and their placement.
- (d) Materials Produced.
Any sales and other materials produced with Brand Fund monies will be made available to you without charge or at a reasonable cost.
The proceeds of such sales will also be deposited into the Brand Fund.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Brand Fund is used for costs associated with advertising, branding, marketing, public relations, and promotional programs. These programs and materials are those that Body20 determines, in its sole discretion, would benefit the Brand or the Studios generally.
Specifically, the Brand Fund may be used for advertising campaigns in various media, creation, maintenance, and optimization of the System Website or other websites, keyword or adword purchasing programs, conducting and managing social media activities and direct mail advertising. Body20 may also use the fund for market research, including secret shoppers and customer satisfaction surveys, branding studies, engaging advertising and/or public relations agencies and paying any related retainers and fees, employing marketing and brand-building personnel and paying the salaries and benefits of such personnel and Body20's marketing department overhead.
Additionally, the Brand Fund can be used for purchasing and designing promotional items, conducting and administering promotions, contests, giveaways, public relations events, and community involvement activities, marketing the sale of franchises, and providing promotional and other marketing materials and services to its franchisees. Body20 may also use contributions to the Brand Fund for reasonable administrative costs and overhead it incurs in the administration of the Brand Fund and the implementation of Brand Fund-supported programs, and to pay for an independent audit of the Brand Fund, if Body20 elects to have it audited.
While Body20 may consult with a franchisee advisory council or a committee of franchisees regarding marketing programs, Body20 retains the right to direct all marketing programs and uses of the Brand Fund, with the final decision over creative concepts, materials, and media used in the programs and their placement. There is no guarantee that a franchisee will benefit from the Brand Fund in proportion to their contributions. Any sales and other materials produced with Brand Fund monies will be made available to franchisees without charge or at a reasonable cost, and the proceeds of such sales will also be deposited into the Brand Fund.