What is the current method of payment for the Body20 Royalty Fee?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. |
NOTES:
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- All of the fees in the table above are imposed by us, payable to us, non-refundable (except for a portion of the Transfer Fee deposit, as described above), and are uniformly imposed. You must use the payment methods we designate. You must furnish us and your bank with any necessary authorizations to make payment by the methods we require.
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- "Gross Sales" means all revenue that you receive or otherwise derive from operating the Studio, whether from cash, check, credit or debit card, gift card or gift certificate, or other credit transactions, and regardless of collection or when you actually provide the products or services in exchange for the revenue. If you receive any proceeds from any business interruption insurance applicable to loss of revenue at the Studio, there shall be added to Gross Sales an amount equal to the imputed Gross Sales that the insurer used to calculate those proceeds. Gross Sales includes promotional allowances or rebates paid to you in connection with your purchase of products or supplies or your referral of customers. Gross Sales does not include (i) any bona fide returns and credits that are actually provided to customers and (ii) any sales or other taxes that you collect from customers and pay directly to the appropriate taxing authority. You may not deduct payment provider fees (i.e., bank or credit card company fees and gift card vendor fees) from your Gross Sales calculation.
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Royalty Fee is currently paid weekly and is due by the 5th of each month, referred to as the "Payment Due Date." The royalty is 8% of the Gross Sales of the Studio. Gross Sales includes all revenue derived from operating the studio, whether from cash, credit, or other transactions, including proceeds from business interruption insurance.
Body20 franchisees must use the payment methods designated by the company and provide necessary authorizations to their bank to facilitate these payments. This requirement ensures that Body20 can efficiently collect royalties and other fees. Franchisees cannot deduct payment provider fees from their Gross Sales calculation.
The FDD specifies that all fees are imposed by and payable to Body20, and are non-refundable, with a minor exception for a portion of the Transfer Fee deposit. This standardization ensures consistent financial obligations across all Body20 franchisees. Understanding these payment terms is crucial for prospective franchisees to manage their cash flow and financial planning effectively.