What is the timeframe for Body20 to repay loans made to the Brand Fund?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
We or one of our affiliates may make or otherwise arrange loans to the Brand Fund in any year in which the balance of the Brand Fund is negative and charge a reasonable rate of interest. The amounts loaned to the Brand Fund will be repaid from future contributions to the Brand Fund in the year the loan is made or in subsequent years.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–49)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if the Brand Fund has a negative balance, Body20 or its affiliates may loan money to the fund and charge a reasonable interest rate. The repayment of these loans will come from future contributions to the Brand Fund.
Specifically, the funds will be repaid either in the same year the loan was made or in subsequent years. This means there isn't a fixed repayment schedule, but rather the repayment is contingent on the Brand Fund receiving sufficient contributions in the future.
As a prospective franchisee, it's important to understand that the Brand Fund is supported by franchisee contributions, and these contributions may be used to repay any loans made to the fund by Body20 or its affiliates. This could impact the amount of money available for marketing and advertising efforts if the Brand Fund needs to allocate funds to loan repayment.