What is the Body20 required minimum spending for grand opening advertising and promotion?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
r any Opening Deadline (as those Deadlines are stated in the Development Schedule) on the same terms.
Grand Opening Marketing. 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. If you fail to meet the required minimum number of pre-opening members and/or paid membership sales (at least 100 members and/or memberships that will generate at least $20,000 in recurring monthly Gross Sales), with the intent and effect that the pre-sold memberships will commence immediately on the Studio's opening date, we may terminate the Franchise Agreement. In lieu of terminating the Franchise Agreement, however, we may require you to spend an additional $10,000 for grand opening advertising and promotion for the Studio. We reserve the right to require you to pay us the $15,000 (or, as applicable $25,000) minimum grand opening spend, and we will use those funds to conduct grand opening advert
Source: Item 5 — INITIAL FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees must spend a minimum of $15,000 on grand opening advertising and promotion. This spending is required to begin at least 60 days before the studio opens and continue for 30 days after opening. The franchisee is responsible for creating a plan for this advertising and promotion, which must be submitted to Body20 for approval.
There is a contingency related to pre-opening membership sales. If a Body20 franchisee fails to secure at least 100 members or memberships that will generate at least $20,000 in recurring monthly gross sales before opening, Body20 has the right to terminate the Franchise Agreement. However, instead of terminating the agreement, Body20 may require the franchisee to spend an additional $10,000 on grand opening advertising and promotion, bringing the total to $25,000.
Body20 also reserves the right to manage the grand opening advertising and promotion directly. In this case, the franchisee would be required to pay Body20 the minimum grand opening spend of $15,000 (or $25,000 if the membership sales target was not met), and Body20 would then use these funds to conduct the advertising and promotion on the franchisee's behalf, according to Body20's discretion. This provides Body20 with control over the initial marketing efforts, but it also means the franchisee relinquishes control over how those funds are spent.
This initial marketing expenditure is a significant upfront cost for new Body20 franchisees. The potential for an additional $10,000 spend if pre-sales targets are not met adds further financial risk. Prospective franchisees should carefully consider their ability to meet these pre-sales goals and factor in the possibility of the higher marketing spend when evaluating the financial viability of the franchise.