Can Body20 use Brand Fund monies for direct mail advertising?
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, the Brand Fund can be used for direct mail advertising. Body20 franchisees are required to contribute up to 4% of gross sales to the Brand Fund, although the current contribution is 2%. These funds are used for advertising, branding, marketing, public relations, and promotional programs.
Specifically, the FDD states that the Brand Fund can be used for activities including advertising campaigns in various media, creation and maintenance of websites, keyword purchasing programs, social media activities, and direct mail advertising. This gives Body20 broad discretion in how the Brand Fund is spent, as long as it benefits the Body20 brand or studios generally.
Body20 does not guarantee that franchisees will benefit from the Brand Fund in proportion to their contributions. While Body20 may consult with a franchisee advisory council, they retain the final decision-making authority over all marketing programs and the use of the Brand Fund. This means that while franchisees contribute to the fund, Body20 ultimately decides how the money is spent, including whether or not to use it for direct mail advertising.