What fee does a Body20 franchisee pay if Body20 provides a temporary Designated Manager?

According to Body20's 2025 Franchise Disclosure Document, if Body20 exercises its right to manage a franchisee's studio, or agrees to manage the studio at the franchisee's request, the franchisee must pay a management fee. This management fee is equal to 10% of the studio's Gross Sales, in addition to Body20's direct out-of-pocket costs related to the management. These costs include the travel and living expenses of Body20's representatives.

This Management Fee applies in specific situations outlined in the Franchise Agreement, such as when Body20 provides a Replacement Designated Manager, upon the franchisee's death, incapacity, or bankruptcy, or as a remedy for certain breaches of the agreement. The fee covers Body20's costs and efforts in maintaining the studio's operations during the transition or period of difficulty.

For a prospective Body20 franchisee, this means that in certain circumstances where the franchisee is unable to manage the studio effectively, Body20 may step in to manage the studio, but at a cost. The franchisee will need to allocate 10% of gross sales plus cover out-of-pocket expenses for travel and lodging. This could significantly impact profitability during the management period, but it may be a necessary cost to ensure the studio remains operational and compliant with Body20 standards.