When is the Body20 Development Fee due?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
the business.
YOUR ESTIMATED INITIAL INVESTMENT
(MULTIPLE STUDIOS DEVELOPED UNDER DEVELOPMENT AGREEMENT)
| Type of Expenditure | Low Estimate | High Estimate | Method of Payment | When Due | To Whom Payment Is Made | |
|---|---|---|---|---|---|---|
| Development Fee (1) | $165,000 | $350,000 | Lump sum | When you sign Development Agreement | Us | |
| Estimated Initial Investment for First Studio (2) | $200,512 | $362,833 | As incurred | As incurred | Us and third parties | |
| TOTAL (3) | $365,512 | $712,833 | #### Notes: |
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- Development Fee. Upon signing the Development Agreement, you must pay us the Development Fee. The Development Fee varies based on the number of Studios you commit to develop.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Development Fee is due when you sign the Development Agreement. The Development Fee ranges from $165,000 to $350,000, payable in a lump sum to Body20. This fee is associated with the Development Agreement, which allows you to develop multiple Body20 studios.
The amount of the Development Fee varies depending on the number of studios you commit to developing. The lower estimate of $165,000 is based on a commitment to develop three studios, while the higher estimate of $350,000 is based on a commitment to develop ten studios. In the first scenario, the franchise fee under each Franchise Agreement would be $55,000 per studio, and in the second scenario, the franchise fee would be $35,000 per studio.
It's important to note that the Development Fee will be credited towards the initial Franchise Fee for each studio developed under the Development Agreement. However, the Development Fee is non-refundable, so it's crucial to carefully consider your commitment before signing the Development Agreement. This is a common practice in multi-unit franchise agreements, where an upfront fee secures the rights to develop multiple locations, with the fee partially offsetting the individual franchise fees later on.