factual

What are the time constraints for the Body20 grand opening advertising and promotion spending?

Body20 Franchise · 2025 FDD

Answer from 2025 FDD Document

ing any additional insurance that you may wish to carry above our required minimums.

    1. Grand Opening Marketing. You must spend a minimum of $15,000 for grand opening advertising and promotion beginning at least 60 days before, and ending 30 days after, the opening of your Studio under a plan that you must submit to us for 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 for your employees will not be credited towards this spending requirement. Your cost may be higher based on the length of time you wish to run opening promotions or any additional marketing spending you may choose to undertake. You must provide us with supporting documentation evidencing these expenditures upon our request. No amount paid by you for your grand opening will be credited towards the Marketing Spending Requirement. If you fail to meet the required minimum number of pre-opening members and/or paid

membership sales (at least 100 members and/or memberships that will generate at least $20,000 in recurring monthly Gross Sales), with the intent and effect that the pre-sold memberships will commence immediately on the Studio's opening date, we may terminate the Franchise Agreement. In lieu of terminating the Franchise Agreement, however, we may require you to spend an additional $10,000 for grand opening advertising and promotion for the Studio. We reserve the right to require you to pay us the $15,000 (or, as applicable $25,000) minimum grand opening spend, and we will use those funds to conduct grand op

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–32)

What This Means (2025 FDD)

According to Body20's 2025 Franchise Disclosure Document, franchisees must spend a minimum of $15,000 on grand opening advertising and promotion. This spending must occur within a specific timeframe, starting at least 60 days before the studio opens and ending 30 days after the opening. The franchisee is required to submit a detailed plan for this spending to Body20 for their approval. Body20 retains the right to modify the grand opening plan at their discretion and may require the franchisee to use a public relations firm to assist with the grand opening.

The FDD specifies that wages and other payroll-related expenses for employees cannot be credited towards the $15,000 spending requirement. The franchisee's actual cost may exceed this minimum, depending on the length of time they choose to run opening promotions or any additional marketing spending they undertake. Body20 may request supporting documentation from the franchisee to verify these expenditures.

Furthermore, the grand opening spending is separate from the Marketing Spending Requirement. If a franchisee fails to meet a minimum number of pre-opening members and/or paid membership sales (at least 100 members and/or memberships that will generate at least $20,000 in recurring monthly Gross Sales), Body20 may terminate the Franchise Agreement. However, instead of termination, Body20 may require the franchisee to spend an additional $10,000 for grand opening advertising and promotion, bringing the total to $25,000. Body20 reserves the right to manage these funds and conduct the grand opening advertising and promotion on behalf of the franchisee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.