Is the Body20 Development Fee refundable?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. The low estimate is based on a commitment to develop three Studios (in which case the Franchise Fee under each Franchise Agreement would be $55,000 per studio) and the high estimate is based on a commitment to develop 10 Studios (in which case the Franchise Fee under each Franchise Agreement would be $35,000 per studio). The Development Fee will be credited towards the initial F
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 not refundable. This fee is paid upon signing the Development Agreement and varies depending on the number of studios the franchisee commits to develop. The low estimate for the Development Fee is $165,000, based on a commitment to develop three studios, while the high estimate is $350,000 for a commitment to develop ten studios.
The Development Fee is credited towards the initial Franchise Fee for each studio developed under the Development Agreement. For instance, if a franchisee commits to three studios, the Franchise Fee under each Franchise Agreement would be $55,000 per studio. If they commit to ten studios, the Franchise Fee would be $35,000 per studio.
Prospective Body20 franchisees should note that while the Development Fee is non-refundable, it does contribute to offsetting the initial Franchise Fee for each studio they develop. This structure incentivizes franchisees to commit to multiple locations, potentially reducing the overall cost per studio. Franchisees should carefully consider the number of studios they plan to develop to determine the most financially advantageous Development Fee commitment.