Does Body20 have the right to direct all marketing programs and uses of the Brand Fund?

According to Body20's 2025 Franchise Disclosure Document, Body20 retains the right to direct all marketing programs and the use of the Brand Fund. While Body20 may consult with a franchisee advisory council or a committee of franchisees, the final decision on creative concepts, materials, and media used in the programs and their placement rests with Body20. This means that while franchisee input may be considered, Body20 has the ultimate authority over how the Brand Fund is spent and what marketing strategies are employed.

This control extends to various activities funded by the Brand Fund, including advertising campaigns, website management, social media activities, and the creation of marketing materials. Body20 can use the Brand Fund for any costs associated with advertising, branding, marketing, public relations, and promotional programs. The document specifies that Body20 is not acting as a fiduciary with respect to the Brand Fund, and franchisees are not guaranteed to benefit from the fund in proportion to their contributions.

For a prospective Body20 franchisee, this signifies that while they are required to contribute to the Brand Fund (up to 4% of Gross Sales, currently 2%), they have limited control over how those funds are utilized. The franchisee must rely on Body20's judgment regarding the best use of the Brand Fund to benefit the brand and the studios generally. It is important to note that Body20 may or may not choose to have an independent audit of the Brand Fund completed. However, Body20 will provide an unaudited statement of contributions and expenditures for the Brand Fund within 60 days after the close of their fiscal year to franchisees who request it in writing.