Can Body20 use Brand Fund monies to conduct and manage social media activities?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
We may use monies in the Brand Fund and any earnings on the Brand Fund account for any costs associated with advertising (media and production), branding, marketing, public relations and/or promotional programs and materials, and any other activities we determine, in our sole discretion, would benefit the Brand or the Studios generally. These activities may include, but are not limited to: (i) advertising campaigns in various media; (ii) creation, maintenance, and optimization of the System Website or other websites; (iii) keyword or adword purchasing programs; (iv) conducting and managing social media activities; (v) direct mail advertising; (vi)
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, Body20 can use monies from the Brand Fund to conduct and manage social media activities. The Brand Fund is supported by franchisee contributions of up to 4% of gross sales; currently, the contribution is 2%.
Body20 has the discretion to use the Brand Fund for advertising, branding, marketing, public relations, promotional programs, and materials that benefit the Body20 brand and studios. These activities include advertising campaigns, website maintenance, keyword purchasing programs, social media management, and direct mail advertising.
The Brand Fund can also cover market research, branding studies, agency fees, salaries of marketing personnel, promotional items, contests, public relations events, community involvement, franchise sales marketing, franchisee marketing materials, and administrative costs. Body20 may consult a franchisee advisory council regarding marketing programs but retains the final decision-making authority.
In fiscal year 2024, the Brand Fund expenditures were allocated as follows: 61.46% on production, 18.5% on administrative expenses, and 20.04% on media placement. Franchisees do not necessarily benefit from the Brand Fund in direct proportion to their contributions.