Under what conditions is a Body20 franchisee prohibited from allowing the use of gift certificates, gift cards, or coupons?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
(i) Promotional Programs. You must participate in all in-Studio promotional programs that we offer to franchisees. You will follow our guidelines concerning the acceptance and reimbursement of gift certificates, gift cards, coupons, corporate discounts, and other promotional programs as we set forth from time to time in the Manuals or otherwise in
writing. You will not allow use of gift certificates, gift cards, or coupons (including Groupons and similar discounts) unless approved or offered by us or our Affiliates.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees are generally prohibited from allowing the use of gift certificates, gift cards, or coupons, including discounts from services like Groupon. This restriction is in place unless the use of such promotional items is explicitly approved or offered by Body20 or its affiliates. This policy is part of Body20's broader effort to maintain consistent promotional strategies across all franchise locations.
This means that a Body20 franchisee cannot independently decide to offer discounts or accept coupons without prior authorization from the franchisor. This ensures that all promotional activities align with the brand's overall marketing strategy and prevents individual franchisees from potentially devaluing the brand through excessive or uncoordinated discounting. The franchisor retains control over promotional offers to manage brand perception and revenue streams effectively.
Body20 or its affiliates reserve the right to offer deals and discounted promotions, including those on third-party platforms like Groupon or ClassPass. In such cases, Body20 retains the revenue generated from these deals. While franchisees are required to honor these promotions by providing sessions or services to customers redeeming vouchers or coupons, Body20 is not obligated to reimburse the franchisee for the full standard price of those sessions, products, or services. This arrangement allows Body20 to drive customer traffic to studios while maintaining control over pricing and revenue distribution.
Franchisees must also participate in all in-studio promotional programs offered by Body20 and adhere to the franchisor's guidelines regarding the acceptance and reimbursement of promotional items. This ensures uniformity in promotional efforts across all Body20 locations and helps maintain a consistent brand image. The franchisee must follow the guidelines set forth in the manuals or in writing.