Can Body20 use Brand Fund monies to purchase promotional items?
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 purchase promotional items. The FDD specifies that the Brand Fund can be used for costs associated with advertising, branding, marketing, public relations, promotional programs, and materials. These activities may include advertising campaigns, website maintenance, social media, and direct mail advertising.
Body20 franchisees are required to contribute up to 4% of gross sales to the Brand Fund (currently 2%). The franchisor has sole discretion over how the Brand Fund is used and is not considered a fiduciary. While Body20 may consult with a franchisee advisory council, it ultimately decides how the Brand Fund is spent.
Body20 does not guarantee that franchisees will directly benefit from the Brand Fund in proportion to their contributions. The franchisor will provide an unaudited statement of Brand Fund contributions and expenditures to franchisees who request it in writing within 60 days after the close of the fiscal year. In 2024, the Brand Fund expenditures were allocated with 61.46% spent on production, 18.5% on administrative expenses, and 20.04% on media placement.