Do the Body20 sales figures provided reflect the costs of sales and operating expenses?

According to Body20's 2025 Franchise Disclosure Document, the sales figures presented do not reflect the costs of sales, operating expenses, or other costs that must be deducted to determine net income or profit. This is a crucial point for potential franchisees to understand, as the gross sales figures presented in Item 19 represent the total revenue generated by Body20 studios before any deductions for expenses.

The FDD emphasizes that these gross sales figures should not be taken as a direct indicator of profitability. A prospective Body20 franchisee needs to account for various expenses such as rent, utilities, salaries, marketing costs, and the cost of goods sold to determine their actual profit. The document encourages potential franchisees to consult with financial advisors to prepare budgets and projections that accurately reflect their potential financial performance.

Body20 provides gross sales information to give potential franchisees an idea of revenue generation, but it is essential to conduct thorough due diligence to estimate expenses and determine potential profitability. The FDD also advises prospective franchisees to contact existing franchisees to discuss their experiences with the system and their franchise business. This direct interaction can provide valuable insights into the costs associated with operating a Body20 studio and help in developing realistic financial projections.