Do the sales figures presented for Body20 studios reflect the costs of sales and operating expenses?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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- These sales figures do not reflect the costs of sales, operating expenses or other costs or expenses that must be deducted from the Gross Sales figures to obtain your net income or profit.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 64–69)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the sales figures presented do not reflect the costs of sales and operating expenses. Item 19 explicitly states that the gross sales figures provided do not account for these deductions. This means that the financial performance data, such as the average annual gross sales of $472,625 for all covered studios, represents the total revenue before any expenses are subtracted.
For a prospective Body20 franchisee, this is a critical consideration. The gross sales figures provide a picture of the revenue-generating potential of a Body20 studio, but they do not represent the actual profit a franchisee can expect to earn. To determine potential profitability, a franchisee must carefully consider all operating expenses, including rent, utilities, salaries, marketing costs, and the cost of goods sold.
Body20 encourages prospective franchisees to consult with accounting, business, and legal advisors to prepare budgets and assess potential financial performance. Additionally, the FDD recommends contacting existing franchisees to discuss their experiences with the system and their franchise business. This due diligence is essential to understanding the true costs associated with running a Body20 franchise and to accurately project potential net income or profit.