How is the Body20 development fee credited towards the franchise fee?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
collected Franchise Fees ranging from $45,000 to $65,000.
Development Fee. If you enter into a Development Agreement, you must pay us, upon signing the Development Agreement, a development fee equal to 100% of the aggregate of all of the Franchise Fees due for each Studio that you agree to develop (the "Development Fee"). The Development Fee will range between $165,000 to $350,000 if you commit to develop between three to 10 Studios. The Development Fee will be credited towards the Franchise Fee due for each Studio developed under the Development Agreement, and there will be no additional Franchise Fee due under
Source: Item 5 — INITIAL FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if a franchisee enters into a Development Agreement, they must pay a development fee upon signing. This fee is equal to 100% of the total franchise fees for all studios the franchisee commits to develop. The development fee can range from $165,000 to $350,000 if the franchisee commits to developing between three and ten studios.
The Development Fee is credited towards the Franchise Fee due for each studio developed under the Development Agreement. This means that the franchisee will not have to pay an additional Franchise Fee for each individual Franchise Agreement signed under the terms of the Development Agreement.
In simpler terms, the initial Development Fee acts as a pre-payment of the franchise fees for each studio the franchisee plans to open. Instead of paying a franchise fee for each studio as it opens, the franchisee pays one lump sum upfront, which is then applied to each studio's franchise fee as it is developed. This can be beneficial for franchisees planning multiple locations as it streamlines the payment process.