Are there any exceptions to the Body20 Brand Fund Fee?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Brand Fund Fee | Currently, 2% of Gross Sales of the Studio. | The Payment Due Date | We have established and administer a Brand Fund and require you to contribute the Brand Fund Fee. We may increase the fee up to 4% of the Gross Sales of the Studio. See Note 2 for the definition of Gross Sales. |
NOTES:
-
- "Gross Sales" means all revenue that you receive or otherwise derive from operating the Studio, whether from cash, check, credit or debit card, gift card or gift certificate, or other credit transactions, and regardless of collection or when you actually provide the products or services in exchange for the revenue. If you receive any proceeds from any business interruption insurance applicable to loss of revenue at the Studio, there shall be added to Gross Sales an amount equal to the imputed Gross Sales that the insurer used to calculate those proceeds. Gross Sales includes promotional allowances or rebates paid to you in connection with your purchase of products or supplies or your referral of customers. Gross Sales does not include (i) any bona fide returns and credits that are actually provided to customers and (ii) any sales or other taxes that you collect from customers and pay directly to the appropriate taxing authority. You may not deduct payment provider fees (i.e., bank or credit card company fees and gift card vendor fees) from your Gross Sales calculation.
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Brand Fund Fee is a standard obligation with no stated exceptions. The Brand Fund Fee is currently 2% of the studio's Gross Sales. This fee is due weekly by the 5th of each month. Body20 has the right to increase this fee up to 4% of Gross Sales. Gross Sales includes all revenue received from operating the studio, including cash, credit, and other forms of transactions, but excludes bona fide returns and sales taxes collected and remitted to the appropriate authority.
Franchisees should be aware that this Brand Fund Fee contributes to a collective fund managed by Body20, intended for marketing and brand-building activities. While the FDD specifies the calculation and potential increase of the fee, it does not outline any conditions under which a franchisee might be exempt or receive a waiver. This means that all Body20 franchisees are expected to contribute to the Brand Fund based on their Gross Sales.
Prospective franchisees should consider the Brand Fund Fee as a non-negotiable part of their financial obligations. It is essential to factor this ongoing expense into their financial projections and business plan. Further, franchisees may want to inquire with Body20 about the specific allocation of the Brand Fund and the types of marketing activities it supports to better understand the value they receive for their contribution. Understanding how the Brand Fund is used can help franchisees assess the potential return on their investment in terms of increased brand awareness and customer acquisition.