Can Body20 use Brand Fund monies for marketing the sale of franchises?
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)
market research, including secret shoppers and customer satisfaction surveys; (vii) branding studies; (viii) engaging advertising and/or public relations agencies and paying any related retainers and fees; (ix) paying the salaries and benefits of our marketing and brand-building personnel and any other overhead related to our marketing department; (x) purchasing promotional items; (xi) conducting and administering promotions, contests, giveaways, public relations events, and community involvement activities; (xii) marketing the sale of Franchises; (xiii) providing promotional and other marketing materials and services to our franchisees; and (xiv) reasonable administrative costs and overhead we incur related to the administration of the Brand Fund and the implementation of Brand Fund-supported programs.
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 to market the sale of franchises. The Brand Fund is supported by franchisee contributions of up to 4% of gross sales (currently set at 2%).
Body20 has the sole discretion to use the Brand Fund for various activities that benefit the brand and its studios. These activities include advertising campaigns, website maintenance, social media management, and promotional programs. The Brand Fund can also cover costs associated with marketing the sale of franchises, salaries and benefits of marketing personnel, and administrative expenses related to the Brand Fund.
Body20 does not guarantee that franchisees will benefit from the Brand Fund in proportion to their contributions. Franchisees can request an unaudited statement of contributions and expenditures for the Brand Fund within 60 days after the close of the fiscal year. In 2024, the Brand Fund expenditures were allocated as follows: 61.46% on production, 18.5% on administrative expenses, and 20.04% on media placement.
Prospective franchisees should note that Body20 retains the right to direct all marketing programs and uses of the Brand Fund. While Body20 may consult with a franchisee advisory council, the final decision on creative concepts, materials, and media used in the programs rests with Body20.