Is the Body20 Brand Fund Fee due on the Payment Due Date?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
orm for all franchisees and must be paid in a lump sum.
ITEM 6 OTHER FEES
OTHER FEES (Note 1)
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (2) | 8% of the Gross Sales of the Studio. | Currently due weekly by the 5th of each month (the "Payment Due Date") | See Note 2 for the definition of Gross Sales. |
| Brand Fund Fee | Currently, 2% of Gross Sales of the Studio. | The Payment Due Date | We have established and administer a Brand Fund and require you to contribute the Brand Fund Fee. We may increase the fee up to 4% of the Gross Sales of the Studio. See Note 2 for the definition of Gross Sales. |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Brand Fund Fee is indeed due on the Payment Due Date. The Payment Due Date is defined in the table as the 5th of each month. Currently, the Brand Fund Fee is 2% of the Gross Sales of the studio.
Body20 has established a Brand Fund, which they administer, and franchisees are required to contribute to it via the Brand Fund Fee. The FDD specifies that Body20 may increase this fee up to a maximum of 4% of the Gross Sales of the studio. Gross Sales are defined as all revenue received from operating the studio, including cash, credit, and other forms of transactions, but excluding bona fide returns, credits, and sales taxes.
For a prospective Body20 franchisee, this means that 2% of their gross sales will be due by the 5th of each month. It is important to note that this fee can be increased up to 4% of gross sales at the discretion of Body20. Franchisees should factor this potential increase into their financial projections and be prepared for the possibility of a higher Brand Fund Fee in the future.