Can Body20 take over the grand opening advertising and promotion for a franchisee?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
our approval. We have the right to modify your grand opening plan, in our sole discretion, and may require you to use a public relations firm to assist with your grand opening. The wages and other payroll-related expenses of your employees shall not be credited towards this spending requirement. No amount paid by you for your grand opening will be credited toward the Marketing Spending Requirement. You must provide us with supporting documentation evidencing these expenditures upon request. We reserve the right, however, to require you to pay to us the $15,000 minimum grand opening spend, and we will use those funds to conduct grand opening advertising and promotion for your Studio on your behalf in a manner that we determine in our sole discretion.
7.4 Advertising Cooperatives.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 has the right to manage a franchisee's grand opening advertising and promotion. The franchisee is typically required to spend a minimum of $15,000 on grand opening advertising and promotion, starting 60 days before the studio opening and ending 30 days after. The franchisee must submit their grand opening plan to Body20 for approval, and Body20 has the right to modify this plan and may require the franchisee to use a public relations firm.
However, Body20 reserves the right to require the franchisee to pay them the $15,000 minimum grand opening spend. If Body20 exercises this right, they will use those funds to conduct the grand opening advertising and promotion for the studio on the franchisee's behalf, determining the manner and methods at their sole discretion.
Furthermore, if a franchisee fails to meet a pre-opening membership requirement, Body20 has the option to require the franchisee to spend an additional $10,000 for grand opening advertising and promotion, bringing the total potential grand opening spend to $25,000. In this scenario, Body20 also reserves the right to manage these funds and implement the advertising and promotion strategy themselves.